India Glycols Limited has received a credit rating update from CARE Ratings Limited, with the rating agency placing the company's bank facilities on Rating Watch with Developing Implications (RWD) following the announcement of a comprehensive corporate restructuring scheme.

Rating Action Details

CARE Ratings has reviewed facilities across multiple categories, maintaining the RWD status that was previously assigned. The rating action covers the company's entire banking facility portfolio:

The rating agency has also withdrawn ratings for bank guarantee facilities amounting to ₹72.63 crore based on the company's request and receipt of No Dues Certificates from the extending banks.

Proposed Corporate Restructuring

The Rating Watch status stems from India Glycols' composite scheme of arrangement, approved by the Board of Directors on 16th May, 2025. Under this restructuring:

• Biofuel (BF) and Potable Spirits (PS) undertakings will be demerged into IGL Spirits Limited (ISL)
• Bio-pharma (BP) undertaking will move to Ennature Bio Pharma Limited (EBL)
• Bio-based specialities & Performance Chemicals (BSPC) segment (excluding biopolymers) will remain under India Glycols
• Kashipur Holdings Limited (KHL) will not merge into India Glycols under the revised scheme

The scheme requires approvals from the National Company Law Tribunal (NCLT), shareholders, creditors, central government, and other regulatory authorities. Shareholding in the demerged entities will maintain the same proportion as India Glycols' current shareholding structure.

Post-Restructuring Business Profile

Following the demerger completion, India Glycols will transform into a pure chemical manufacturer, housing only the glycols and new specialities units. This focused segment demonstrated strong performance metrics:

CARE Ratings expects the restructured entity to maintain average debt coverage metrics, with net debt to PBLDT (including letter of credit acceptances) not expected to exceed 4.5x. This ratio is anticipated to strengthen further due to scheduled term-loan repayments and organic improvement in PBLDT as the new specialities unit scales up.

Current Financial Position

India Glycols operates across four major segments with diversified revenue streams. In FY25, the company achieved 14% revenue growth to ₹3,748 crore, with PBLDT margin improving to 13.09%. For 9MFY26, revenue grew 11% year-on-year to ₹3,239 crore, with margin expansion to 15.04%.

The company's segment-wise performance in FY25 showed:

• BSPC segment: 36% revenue contribution, 27% operating profit contribution
• Biofuels segment: 28% revenue contribution, 12% operating profit contribution
• Potable Spirits segment: 31% revenue contribution, 56% operating profit contribution
• Ethanol Business segment: 6% revenue contribution, 12% operating profit contribution

In Q3FY26, the company raised ₹467 crore through a preferential issue, with the majority utilized for debt reduction. Total debt including LC-based acceptances reduced to ₹1,863 crore as of December 31, 2025, and further to ₹1,793 crore by January 31, 2026.

Rating Outlook and Monitoring

CARE Ratings will closely monitor developments regarding the scheme approvals and will review ratings once necessary approvals are in place and the transaction is completed entirely. The rating agency expects the restructuring to enhance capital allocation, management focus, and resource efficiency across the separated businesses.

The completion timeline for the entire scheme is expected within six months, subject to regulatory approvals. Until then, the facilities will continue under the Rating Watch with Developing Implications status.

India Glycols Limited has announced the rescheduling of crucial National Company Law Tribunal (NCLT) ordered meetings related to its Scheme of Arrangement. The meetings, originally scheduled for March 9, 2026, have been moved to March 24, 2026, following approval from the NCLT Allahabad Bench at Prayagraj.

Meeting Rescheduling Details

The company filed an interim application seeking rescheduling due to the unavailability of the Hon'ble Chairperson appointed by the NCLT to chair the meetings on March 9, 2026. The NCLT, through its revised order dated February 16, 2026, granted permission for the meetings to be convened on the new date.

Scheme of Arrangement Background

The meetings are being conducted for the purpose of considering and approving the Scheme of Arrangement under Sections 230 to 232 of the Companies Act, 2013. The scheme involves three entities and their respective shareholders:

• India Glycols Limited (Applicant No. 1/Demerged Company)
• Ennature Biopharma Limited
• IGL Spirits Limited

Meeting Participants and Process

The NCLT has directed the convening of separate meetings for two distinct groups of stakeholders. Both meetings will be conducted through video conferencing to ensure broader participation and accessibility.

Regulatory Compliance and Documentation

The disclosure was made under Regulation 30 of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has made the NCLT order available on its website for stakeholder reference. The communication was addressed to both BSE Limited (Scrip Code: 500201) and National Stock Exchange of India Limited (Symbol: INDIAGLYCO).

The company noted that a certified copy of the order is awaited, and the Scheme remains subject to applicable regulatory and other approvals. This rescheduling represents a procedural adjustment to accommodate the chairperson's availability while maintaining the integrity of the approval process for the proposed corporate restructuring.