DCM Shriram Industries Ltd has secured a significant regulatory milestone with the National Company Law Tribunal (NCLT) sanctioning its comprehensive corporate restructuring plan. The approval marks a major step in the company's strategic reorganization efforts.

Corporate Restructuring Details

The NCLT-approved scheme encompasses a composite arrangement involving multiple corporate actions. The restructuring plan includes the amalgamation of DCM Shriram Industries with Lily Commercial, followed by a strategic demerger of operations.

Shareholder Impact

Under the sanctioned scheme, existing shareholders of DCM Shriram Industries will receive shares in the resultant companies following the completion of the restructuring process. This arrangement ensures that current stakeholders maintain their investment exposure through equity participation in the newly formed entities.

Strategic Implications

The corporate restructuring will result in the creation of two distinct business entities - DCM Shriram Fine Chemicals and DCM Shriram International. This separation is expected to allow each entity to focus on its specific business segments and operational requirements.

The NCLT approval represents the completion of the regulatory approval process for this complex corporate arrangement, enabling the company to proceed with the implementation of its restructuring plan.

DCM Shriram Industries shares are in focus as the stock began trading on an ex-demerger basis following the December 26 record date for its approved demerger scheme. The company had initially announced December 19 as the record date before revising it to December 26.

Trading Timeline and Eligibility

Under the updated timeline and T+1 settlement cycle, December 23 was the final day for investors to purchase shares to remain eligible for demerger benefits. Since December 25 was a market holiday for Christmas, the stock commenced ex-demerger trading on December 24. Shares purchased on or after this date are not entitled to receive shares in the resulting entities.

Demerger Structure and Approvals

The demerger has received approval from the National Company Law Tribunal (NCLT), New Delhi Bench. The reorganisation involves creating two newly formed listed entities alongside the residual company:

Share Allocation Terms

Shareholders holding equity shares as of the record date will receive shares in a 1:1:1 ratio. The allocation structure provides:

• One share retained in residual DCM Shriram Industries
• One fully paid-up equity share of ₹2.00 each in DSFCL
• One fully paid-up equity share of ₹2.00 each in DSIL

Practical Example

For illustration, an investor holding 50 shares of DCM Shriram Industries as of the record date will:

The equity shares of both demerged entities will be credited to eligible shareholders after completion of necessary procedural formalities and implementation processes.