Modern Insulators Limited (MIL) has announced a significant corporate action, setting October 31, 2025, as the record date for its scheme of arrangement with Modern Polytex Limited (MPL). This move marks a crucial step in the company's strategic plans, potentially impacting shareholders of both entities.

Key Details of the Arrangement

The scheme of arrangement between Modern Insulators and Modern Polytex involves a share exchange that will affect eligible shareholders. Here are the essential details:

Under this arrangement, eligible shareholders of Modern Insulators will receive one fully paid equity share of Modern Polytex (face value Rs. 10.00 each) for every two fully paid equity shares held in Modern Insulators (face value Rs. 10.00 each).

Corporate Governance and Compliance

The decision to fix the record date was made by the Board of Directors of Modern Insulators in consultation with Modern Polytex Limited. This collaborative approach ensures that the interests of both companies are considered in the implementation of the scheme.

The company has duly informed the BSE Ltd. about this development, adhering to the regulatory requirements under Regulations 30 and 42 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This transparency in communication is crucial for maintaining investor trust and complying with stock exchange norms.

Implications for Shareholders

Shareholders of Modern Insulators should take note of the following:

1. Eligibility: Only shareholders whose names appear in the register of members as of the record date (October 31, 2025) will be entitled to receive shares of Modern Polytex.
2. Share Allotment: The new shares in Modern Polytex will be issued and allotted based on the predetermined ratio.
3. Portfolio Adjustment: This arrangement will result in a diversification of holdings for existing Modern Insulators shareholders, as they will now have stakes in both companies.

Conclusion

This corporate action represents a significant development for Modern Insulators and its shareholders. It's part of a broader scheme of arrangement between Modern Insulators and Modern Polytex, the full details and implications of which may unfold in the coming months. Shareholders and potential investors should closely monitor further announcements from both companies to understand the complete impact of this arrangement on their investments.

As always, it is advisable for investors to consult with financial advisors to understand the personal implications of such corporate actions on their investment portfolios.

Modern Insulators Limited , a key player in the insulator manufacturing sector, has made a strategic move to expand its footprint in the railway infrastructure domain. The company has entered into a joint venture agreement with Sikka Engineering Company, aiming to participate in Railway EPC (Engineering, Procurement, and Construction) tenders for railway electrification work.

Joint Venture Details

The Board of Directors of Modern Insulators Limited approved this significant partnership on July 9, 2020. The joint venture has been structured as an Association of Person (AOP), a move that allows both companies to combine their expertise and resources for upcoming railway projects.

Ownership Structure

It's noteworthy that despite the collaborative nature of this venture, Modern Insulators Limited will not hold any shareholding in Sikka Engineering Company. This arrangement maintains the independence of both entities while allowing them to work together on specific projects.

Strategic Implications

This partnership is poised to open new avenues for Modern Insulators in the rapidly growing sector of railway electrification. By joining forces with Sikka Engineering Company, Modern Insulators can leverage its manufacturing capabilities alongside Sikka's engineering expertise to bid for substantial railway electrification projects.

Company Relations

The announcement clarifies that Sikka Engineering Company is not related to Modern Insulators' promoter or promoter group, emphasizing the arm's length nature of this business arrangement.

Market Outlook

The formation of this joint venture comes at a time when India is pushing for extensive railway electrification as part of its infrastructure modernization efforts. This strategic move could potentially position Modern Insulators to capitalize on the growing opportunities in this sector, diversifying its revenue streams beyond its core insulator business.

As the railway electrification drive gains momentum across the country, the Modern Insulators-Sikka Engineering joint venture appears well-timed to participate in and benefit from this infrastructure expansion.