Description

DCM Shriram Industries Ltd. to be removed from multiple BSE indices effective December 19, 2025 due to demerger of Chemical and Rayon undertakings.

Summary

DCM Shriram Industries Ltd. (Exchange ticker: 523369) will be removed from four BSE indices effective December 19, 2025, due to the demerger of its Chemical undertaking into DCM Shriram Fine Chemicals Ltd. and Rayon Undertaking into DCM Shriram International Ltd. The affected indices are BSE SMALLCAP, BSE ALLCAP, BSE FAST MOVING CONSUMER GOODS, and BSE MIDSMALLCAP.

Key Points

  • DCM Shriram Industries Ltd. (ticker: 523369) is demerging into two entities
  • Chemical undertaking will transfer to DCM Shriram Fine Chemicals Ltd.
  • Rayon Undertaking will transfer to DCM Shriram International Ltd.
  • No new stocks are being added to any of the affected indices
  • Changes included in end-of-day corporate action file (*.SDE)
  • For queries, contact bseindex@bseindia.com

Regulatory Changes

No regulatory changes. This is a corporate action-driven index rebalancing pursuant to a scheme of arrangement approved for DCM Shriram Industries Ltd.

Compliance Requirements

  • Index funds and ETFs tracking the affected indices must rebalance portfolios to remove DCM Shriram Industries Ltd.
  • Market participants using these indices as benchmarks should update their tracking systems
  • Fund managers must execute necessary trades before/on the effective date to maintain index alignment

Important Dates

  • Notice Date: December 17, 2025
  • Effective Date: December 19, 2025 (Friday)
  • Corporate Action File: Included in end-of-day file on December 17, 2025

Impact Assessment

Market Impact: Passive funds tracking BSE SMALLCAP, BSE ALLCAP, BSE FAST MOVING CONSUMER GOODS, and BSE MIDSMALLCAP indices will need to sell their holdings in DCM Shriram Industries Ltd., potentially creating selling pressure on the stock on December 19, 2025.

Operational Impact: Index fund managers have limited time (2 business days) to execute rebalancing trades. The simultaneous removal from four indices without replacement stocks may create temporary liquidity issues.

Affected Indices:

  • BSE SMALLCAP
  • BSE ALLCAP
  • BSE FAST MOVING CONSUMER GOODS
  • BSE MIDSMALLCAP

Investor Consideration: Shareholders of DCM Shriram Industries Ltd. will receive shares in the two resulting entities (DCM Shriram Fine Chemicals Ltd. and DCM Shriram International Ltd.) per the demerger scheme terms.

Impact Justification

Index constituent changes affect passive funds and index tracking strategies. The demerger impacts multiple BSE indices but is limited to one stock.