Description

DCM Shriram Industries Limited demerger into DCM Shriram Fine Chemicals Limited and DCM Shriram International Limited, with record date on December 19, 2025, and 1:1 share allotment ratio for both resulting companies.

Summary

BSE has announced the demerger of DCM Shriram Industries Limited (Scrip Code: 523369) pursuant to a Composite Scheme of Arrangement approved by the National Company Law Tribunal, New Delhi. The demerger involves separation of two business undertakings: the Chemical Undertaking will be transferred to DCM Shriram Fine Chemicals Limited (Resulting Company 1) and the Rayon Undertaking will be transferred to DCM Shriram International Limited (Resulting Company 2). Shareholders will receive shares in both resulting companies in a 1:1 ratio. The record date is set for December 19, 2025.

Key Points

  • Record date fixed as December 19, 2025 for determining shareholder entitlement
  • Ex-entitlement date: December 19, 2025 (Settlement No. DR-781/2025-2026)
  • Share exchange ratio: 1 equity share of Rs. 2/- face value in each resulting company for every 1 equity share of Rs. 2/- face value held in DCM Shriram Industries Limited
  • Chemical Undertaking to be demerged into DCM Shriram Fine Chemicals Limited
  • Rayon Undertaking to be demerged into DCM Shriram International Limited
  • DCM Shriram Industries shares to be transferred from ‘B’ group to ‘T’ group effective December 19, 2025
  • Special Pre-open Session (SPOS) call auction applicable on December 19, 2025
  • Both resulting companies will be listed on BSE Limited subject to compliance with requisite formalities

Regulatory Changes

Pursuant to SEBI Circular No. SEBI/Cir/ISD/1/2010 dated November 2, 2010, trading in DCM Shriram Industries Limited equity shares will be transferred from ‘B’ group to ‘T’ group (Trade-to-Trade segment) with effect from December 19, 2025. This restricts intraday trading and requires delivery-based settlement.

Pursuant to SEBI Circular No. CIR/MRD/DP/01/2012 dated January 20, 2012, the scrip will be subject to Call Auction in Special Pre-open Session (SPOS) on December 19, 2025, as per BSE notice no. 20120216-29 dated February 16, 2012.

Compliance Requirements

  • Trading members must note the transfer of DCM Shriram Industries shares to ‘T’ group effective December 19, 2025
  • Trading members should refer to Exchange notice no. 20120216-29 dated February 16, 2012 for Special Pre-open Session procedures
  • Shareholders must hold shares as of record date (December 19, 2025) to be eligible for entitlement in both resulting companies
  • Both resulting companies must complete requisite formalities for listing on BSE Limited

Important Dates

  • December 17, 2025: Circular issue date
  • December 19, 2025: Record date for determining shareholder entitlement
  • December 19, 2025: Ex-entitlement date (Settlement No. DR-781/2025-2026)
  • December 19, 2025: Transfer of scrip from ‘B’ group to ‘T’ group
  • December 19, 2025: Special Pre-open Session (SPOS) call auction

Impact Assessment

Shareholder Impact: Existing shareholders of DCM Shriram Industries Limited will receive shares in two new entities in a 1:1 ratio, effectively doubling their holdings across three companies (original plus two resulting companies). This restructuring provides shareholders with separate investment vehicles for the chemical and rayon businesses.

Trading Impact: The transfer to ‘T’ group significantly impacts trading as it eliminates intraday trading opportunities and requires all transactions to be settled on a delivery basis. The Special Pre-open Session on the ex-date may result in price volatility due to the call auction mechanism.

Market Impact: The demerger creates two new listed entities, expanding investment options in the chemical and rayon sectors. The separation allows each business to operate independently with focused management and potentially unlock shareholder value through clearer business segmentation.

Liquidity Impact: T-group classification may temporarily reduce liquidity as it restricts speculative trading, though this is a standard measure for corporate action events to ensure orderly price discovery.

Impact Justification

Major corporate restructuring involving demerger of two business undertakings with significant shareholder impact, new company listings, and trading restrictions including transfer to T group and special pre-open session requirements.