Description

NCLT-approved demerger of Modern Insulators Ltd's Yarn Division to Modern Polytex Limited with 1:2 share ratio; record date October 31, 2025.

Summary

BSE has announced the NCLT Delhi Bench-approved Scheme of Arrangement for demerger of Modern Insulators Ltd’s (Scrip Code: 515008) Yarn Division Undertaking at Surat (GPF) into Modern Polytex Limited. Shareholders of Modern Insulators 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 record date is October 31, 2025, with ex-entitlement from the same date. The scrip will be transferred from ‘X’ Group to ‘XT’ group and will trade under Special Pre-open Session (SPOS) on the record date.

Key Points

  • Demerger of Yarn Division Undertaking at Surat (GPF) from Modern Insulators Ltd to Modern Polytex Limited
  • Share exchange ratio: 1 equity share of Modern Polytex (Rs. 10 FV) for every 2 equity shares of Modern Insulators (Rs. 10 FV)
  • Demerged Company: Modern Insulators Ltd (Scrip Code: 515008)
  • Resulting Company: Modern Polytex Limited (to be listed on BSE)
  • Scheme approved by Hon’ble National Company Law Tribunal, Delhi Bench
  • Trading group change: Modern Insulators to move from ‘X’ Group to ‘XT’ Group from October 31, 2025
  • Special Pre-open Session (SPOS) - Call Auction to be conducted on October 31, 2025
  • Settlement Number: DR-747/2025-2026

Regulatory Changes

  • Modern Insulators Ltd equity shares will be transferred from ‘X’ Group to ‘XT’ Group effective October 31, 2025 (per SEBI Circular SEBI/Cir/ISD/1/2010 dated November 2, 2010)
  • The scrip will be part of Call Auction in Special Pre-open Session (SPOS) on October 31, 2025 (per SEBI Circular CIR/MRD/DP/01/2012 dated January 20, 2012)
  • Modern Polytex Limited equity shares will be listed on BSE Limited subject to compliance with requisite formalities

Compliance Requirements

  • Trading members must note the transfer of Modern Insulators from ‘X’ to ‘XT’ group for trading purposes
  • Trading members should refer to BSE notice no. 20120216-29 dated February 16, 2012 for detailed guidelines on Special Pre-open Session procedures
  • Modern Polytex Limited must complete requisite listing formalities for BSE listing of newly issued shares
  • Shareholders must hold shares as of record date to be eligible for new share allotment

Important Dates

  • October 24, 2025: Notice date and circular issuance
  • October 31, 2025: Record date for determining shareholder entitlement
  • October 31, 2025: Ex-entitlement date
  • October 31, 2025: Transfer of Modern Insulators from ‘X’ Group to ‘XT’ Group
  • October 31, 2025: Special Pre-open Session (SPOS) Call Auction

Impact Assessment

Shareholder Impact: Existing shareholders of Modern Insulators Ltd will receive shares in Modern Polytex Limited in the ratio of 1:2, effectively creating two separate holdings. This represents a significant restructuring of shareholder portfolios and may affect investment strategies.

Trading Impact: The transfer to ‘XT’ group and Special Pre-open Session indicates heightened surveillance and controlled trading environment on the record date. This may result in price discovery through call auction mechanism and potentially higher volatility.

Market Structure: The demerger separates the Yarn Division business into a standalone listed entity (Modern Polytex Limited), allowing for focused operations and separate market valuations for each business vertical. This corporate restructuring enables shareholders to independently assess and trade positions in the insulator and yarn businesses.

Operational Impact: The demerger allows both entities to pursue independent growth strategies with dedicated management focus on their respective core businesses - insulators for Modern Insulators and yarn manufacturing for Modern Polytex.

Impact Justification

Major corporate restructuring involving demerger of business division with new share issuance, trading group transfer to XT, and special trading arrangements affecting shareholder rights and holdings.