Parshva Enterprises Limited's wholly-owned subsidiary, Simandhar Impex Limited, has announced significant changes to its corporate structure, including the appointment of a new chairperson and the formation of key board committees.

New Leadership and Committee Structure

The company has appointed Harsh Vora as its new Chairperson, marking a notable change in its top leadership. Alongside this appointment, Simandhar Impex has constituted three essential board committees:

These committees are crucial for ensuring good corporate governance, overseeing financial reporting, managing stakeholder relations, and handling nomination and remuneration matters.

Additional Appointments

In addition to these structural changes, Simandhar Impex Limited has appointed JSD & Associates as its Secretarial Auditors for the financial year 2025-26. This appointment underscores the company's commitment to maintaining compliance with regulatory requirements.

Corporate Restructuring Context

These changes come in the wake of a significant corporate restructuring involving Parshva Enterprises Limited and Simandhar Impex Limited. The National Company Law Tribunal, Mumbai Bench, has recently approved a Scheme of Arrangement between the two companies.

The scheme involves the demerger of Parshva Enterprises Limited's Jewellery Business to Simandhar Impex Limited. This strategic move is aimed at allowing each business to have focused management and independent growth strategies, potentially leading to enhanced value creation for stakeholders.

Implications for Stakeholders

These developments signal a new phase for Simandhar Impex Limited, with a restructured leadership and governance framework. Shareholders and other stakeholders will be keenly watching how these changes impact the company's operations and performance in the jewellery sector.

As the company moves forward with its new structure, the market will be observing how effectively it leverages these changes to drive growth and create value in the competitive jewellery market.

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.