The National Company Law Tribunal (NCLT) Mumbai Bench has given its nod to the scheme of arrangement for the demerger between Parshva Enterprises Limited and its wholly-owned subsidiary, Simandhar Impex Limited. This corporate action marks a significant restructuring for the BSE-listed Parshva Enterprises, aiming to streamline its business operations and unlock value for shareholders.

Key Details of the Demerger

Strategic Rationale

The demerger is designed to achieve several strategic objectives:

1. Focused Management: Enable dedicated management and independent growth strategies for each business segment.
2. Enhanced Visibility: Provide better visibility of individual businesses to stakeholders and the investor community.
3. Operational Flexibility: Allow for different operating models suited to the specific needs of each business.
4. Capital Allocation: Facilitate more efficient capital allocation based on the risk-return profile of each business.
5. Investor Appeal: Attract investors with different risk appetites to each business segment.

Impact on Shareholders

Under the scheme, shareholders of Parshva Enterprises will receive shares in Simandhar Impex Limited. The exact share entitlement ratio will be based on the valuation report dated May 14, 2024, which has been confirmed by a fairness opinion from a merchant banker on the same date.

Regulatory Compliance

The scheme has received necessary approvals, including:

• No objection from BSE Limited on February 5, 2025
• Sanction from NCLT Mumbai Bench on October 13, 2025

Parshva Enterprises is required to file the NCLT order with the Registrar of Companies within 30 days of receipt.

Financial Implications

While specific financial details are not provided, the demerger is expected to create more value for stakeholders by allowing each entity to pursue its growth plans independently. The jewellery business will operate under Simandhar Impex, while Parshva Enterprises will focus on its real estate and diamond businesses.

Conclusion

This corporate restructuring represents a strategic move by Parshva Enterprises to optimize its business portfolio. As the jewellery segment moves to Simandhar Impex, both companies are positioned to leverage their core competencies and pursue focused growth strategies. Shareholders and market observers will be keenly watching how this demerger unfolds and impacts the valuation and performance of both entities in the coming quarters.

Parshva Enterprises Limited , a diversified company with interests in trading and jewellery, has reported a significant increase in its standalone net profit for the quarter ended June 30, 2025. The company's financial results, approved by its Board of Directors on July 29, 2025, reveal a robust performance and progress on its strategic initiatives.

Financial Highlights

Parshva Enterprises posted a standalone net profit of Rs 7.69 crore for Q1 FY2026, marking a substantial 56% increase from Rs 4.94 crore in the corresponding quarter of the previous year. This growth in profitability comes despite a marginal increase in revenue.

The company's revenue from operations rose to Rs 615.79 crore in Q1 FY2026, up from Rs 561.75 crore in Q1 FY2025, representing a 9.6% year-on-year growth.

On a consolidated basis, which includes the performance of its wholly-owned subsidiaries, Parshva Enterprises reported a net profit of Rs 7.21 crore, compared to Rs 4.48 crore in the same quarter last year, showing a 61% increase.

Here's a breakdown of the key financial metrics for Q1 FY2026:

Operational Performance

The company's improved profitability can be attributed to better operational efficiency and cost management. Despite a 9.9% increase in total expenses to Rs 605.61 crore, Parshva Enterprises managed to expand its profit margins significantly.

Strategic Developments

Parshva Enterprises is proceeding with the demerger of its jewellery business into its wholly-owned subsidiary, Simandhar Impex Limited. The company has received shareholder approval for this strategic move in June 2025, following the receipt of observation letters from BSE Limited and necessary approvals from creditors.

This demerger is part of Parshva Enterprises' strategy to streamline its operations and potentially unlock value for its shareholders. The jewellery business will be transferred to Simandhar Impex Limited on a going concern basis.

Subsidiary Operations

The company operates through two wholly-owned subsidiaries:

1. Parshva Multitrade Limited: Incorporated in November 2023 to explore opportunities in the real estate market.
2. Simandhar Impex Limited: Established in December 2023 to focus on the jewellery business.

These subsidiaries are part of Parshva Enterprises' strategy to diversify and strengthen its presence in different market segments.

Looking Ahead

With a strong start to the fiscal year and strategic initiatives underway, Parshva Enterprises appears well-positioned for growth. The demerger of its jewellery business, once completed, may allow for more focused development of both the trading and jewellery segments.

Investors and stakeholders will be watching closely to see how these strategic moves translate into long-term value creation for the company.