Description

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

Summary

BSE has announced changes to multiple indices effective December 19, 2025, due to the demerger of DCM Shriram Industries Ltd. (ticker: 523369). The company is splitting its Chemical undertaking into DCM Shriram Fine Chemicals Ltd. and its Rayon Undertaking into DCM Shriram International Ltd. As a result, DCM Shriram Industries Ltd. will be removed from BSE SMALLCAP, BSE ALLCAP, BSE FAST MOVING CONSUMER GOODS, and BSE MIDSMALLCAP indices.

Key Points

  • DCM Shriram Industries Ltd. (Exchange ticker: 523369) is being removed from four BSE indices
  • Removal is due to demerger of Chemical and Rayon undertakings into separate entities
  • No new additions to the affected indices in this reconstitution
  • Changes are included in the end-of-day corporate action file (*.SDE)
  • Queries can be directed to bseindex@bseindia.com

Regulatory Changes

No regulatory changes. This is an index reconstitution driven by corporate action (scheme of arrangement/demerger).

Compliance Requirements

Index fund managers and passive investment strategies tracking the affected indices must adjust their portfolios to reflect the removal of DCM Shriram Industries Ltd. effective from the close of trading on December 19, 2025.

Important Dates

  • December 17, 2025: Circular notice date
  • December 19, 2025: Effective date for index changes and demerger implementation

Impact Assessment

Affected Indices:

  1. BSE SMALLCAP - DROP: DCM Shriram Industries Ltd.
  2. BSE ALLCAP - DROP: DCM Shriram Industries Ltd.
  3. BSE FAST MOVING CONSUMER GOODS - DROP: DCM Shriram Industries Ltd.
  4. BSE MIDSMALLCAP - DROP: DCM Shriram Industries Ltd.

Market Impact:

  • Passive funds and ETFs tracking these indices will need to sell DCM Shriram Industries Ltd. shares
  • Potential price pressure on the stock due to index-related selling
  • The two resulting entities (DCM Shriram Fine Chemicals Ltd. and DCM Shriram International Ltd.) may be considered for index inclusion in the future based on eligibility criteria
  • Limited broader market impact as changes affect only one company across multiple indices

Impact Justification

Index reconstitution due to corporate restructuring affects passive fund tracking and index composition but is limited to one company across multiple indices