Description

Modern Insulators Ltd demerger of Yarn Division to Modern Polytex Limited with 1:2 share ratio. Record date October 31, 2025. Scrip moves to XT group and SPOS.

Summary

Modern Insulators Ltd (Scrip Code 515008) has received NCLT Delhi Bench approval for demerger of its Yarn Division Undertaking at Surat (GPF) to Modern Polytex Limited. Record date is October 31, 2025. Shareholders will receive 1 fully paid-up equity share of Rs. 10 face value in Modern Polytex Limited for every 2 equity shares held in Modern Insulators Ltd. The scrip will move from X Group to XT Group and be subject to Special Pre-open Session (SPOS) on the ex-entitlement date.

Key Points

  • Demerger of Yarn Division Undertaking at Surat (GPF) from Modern Insulators Ltd to Modern Polytex Limited
  • NCLT Delhi Bench has approved the Scheme of Arrangement
  • Share swap ratio: 1 equity share of Modern Polytex Ltd (Rs. 10 FV) for every 2 equity shares of Modern Insulators Ltd (Rs. 10 FV)
  • Record date: October 31, 2025
  • Ex-entitlement date: October 31, 2025 (Settlement DR-747/2025-2026)
  • Modern Insulators Ltd scrip moves from X Group to XT Group effective October 31, 2025
  • Special Pre-open Session (SPOS) / Call Auction applicable on October 31, 2025
  • Modern Polytex Limited shares will be listed on BSE subject to compliance with formalities

Regulatory Changes

  • Pursuant to SEBI Circular SEBI/Cir/ISD/1/2010 dated November 2, 2010: Trading in Modern Insulators Ltd equity shares transferred from X Group to XT Group effective October 31, 2025
  • Pursuant to SEBI Circular CIR/MRD/DP/01/2012 dated January 20, 2012: Scrip will be part of Call Auction in Pre-open Session (Special Pre-open Session) on October 31, 2025

Compliance Requirements

  • Trading members must note the group change from X to XT for Modern Insulators Ltd
  • Trading members should refer to BSE notice no. 20120216-29 dated February 16, 2012 for SPOS procedures
  • Modern Polytex Limited must complete requisite formalities for listing on BSE
  • Shareholders of Modern Insulators Ltd as on record date will be entitled to new shares in Modern Polytex Limited

Important Dates

  • October 24, 2025: Circular issue date
  • October 31, 2025: Record date for determining shareholder entitlement
  • October 31, 2025: Ex-entitlement date (Settlement DR-747/2025-2026)
  • October 31, 2025: Effective date for group change from X to XT
  • October 31, 2025: Special Pre-open Session (SPOS) applicable

Impact Assessment

Market Impact: High - The demerger involves separation of a complete business division (Yarn Division) which will fundamentally change the business composition of Modern Insulators Ltd. The 1:2 share ratio means significant dilution consideration for shareholders.

Trading Impact: High - Movement to XT Group indicates heightened surveillance, typically applied to scrips undergoing corporate actions. SPOS implementation means only call auction trading on ex-date, restricting normal continuous trading.

Investor Impact: High - Existing shareholders will receive new shares in a separately listed entity (Modern Polytex Limited). This creates a forced portfolio change and potential tax implications. Investors need to evaluate both entities post-demerger.

Operational Impact: The demerger separates the Yarn Division operations located at Surat from the parent company, creating two independent listed entities with distinct business focuses.

Impact Justification

Major corporate restructuring involving demerger with share allotment, group change to XT, and special trading arrangements affecting all shareholders