Description

DCM Shriram Industries Ltd demerger approved by NCLT - Chemical Undertaking to DCM Shriram Fine Chemicals Ltd and Rayon Undertaking to DCM Shriram International Ltd in 1:1 ratio. Record date set for 19 December 2025.

Summary

DCM Shriram Industries Ltd (Scrip Code: 523369) has received NCLT New Delhi approval for a Composite Scheme of Arrangement involving demerger of its two business undertakings. The Chemical Undertaking will be demerged into DCM Shriram Fine Chemicals Ltd (Resulting Company 1) and the Rayon Undertaking will be demerged into DCM Shriram International Ltd (Resulting Company 2). Shareholders of DCM Shriram Industries will receive 1 equity share of Rs. 2/- face value in each of the two resulting companies for every 1 equity share held in the demerged company. The record date is fixed as 19 December 2025, and the stock will be transferred to T group with special pre-open session trading from the same date.

Key Points

  • NCLT New Delhi has approved the Composite Scheme of Arrangement (Demerger)
  • Chemical Undertaking to be demerged into DCM Shriram Fine Chemicals Ltd
  • Rayon Undertaking to be demerged into DCM Shriram International Ltd
  • Share exchange ratio: 1:1:1 (for every 1 share of DCMSR, shareholders get 1 share each of both resulting companies)
  • All equity shares have face value of Rs. 2/- each
  • Record date: 19 December 2025
  • Ex-entitlement date: 19 December 2025 (Settlement DR-781/2025-2026)
  • DCM Shriram Industries stock to move from B group to T group effective 19 December 2025
  • Stock will trade under Call Auction in Special Pre-open Session (SPOS) on 19 December 2025
  • Both resulting companies’ equity shares will be listed on BSE subject to formalities

Regulatory Changes

Pursuant to SEBI Circular No. SEBI/Cir/ISD/1/2010 dated November 2, 2010, the equity shares of DCM Shriram Industries Ltd will be transferred from ‘B’ group to ‘T’ group effective 19 December 2025. This transfer to T group is standard procedure for securities undergoing corporate actions like demergers.

Pursuant to SEBI Circular No. CIR/MRD/DP/01/2012 dated January 20, 2012, the scrip will participate in Call Auction through Special Pre-open Session (SPOS) on 19 December 2025. Trading members should refer to BSE notice no. 20120216-29 dated February 16, 2012 for SPOS procedures.

Compliance Requirements

  • Trading members must note the group change from B to T effective 19 December 2025
  • Trading members must follow SPOS procedures for trading on 19 December 2025
  • Shareholders must hold shares as of record date (19 December 2025) to receive entitlement in both resulting companies
  • Depositories and participants must process corporate action as per the approved scheme
  • Both resulting companies must complete listing formalities with BSE before their shares can commence trading

Important Dates

  • 17 December 2025: Circular issue date
  • 19 December 2025: Record date for demerger entitlement
  • 19 December 2025: Ex-entitlement date (Settlement DR-781/2025-2026)
  • 19 December 2025: Transfer to T group effective date
  • 19 December 2025: Special Pre-open Session (SPOS) trading
  • Post 19 December 2025: Listing of DCM Shriram Fine Chemicals Ltd and DCM Shriram International Ltd equity shares (subject to formalities)

Impact Assessment

Shareholder Impact (High): Existing shareholders will see their single holding in DCM Shriram Industries transformed into holdings in three separate entities - the original company plus two new resulting companies. Each shareholder receives equal number of shares in both resulting companies, maintaining proportional ownership.

Trading Impact (High): Movement to T group restricts trading to once a week on specific days with price bands, significantly reducing liquidity. SPOS on record date means special call auction procedures apply. Normal trading will resume after corporate action completion.

Market Impact (Medium-High): The demerger separates two distinct business verticals (Chemicals and Rayon), potentially unlocking value by allowing each business to be valued independently. Institutional and retail investors will need to reassess investment thesis for three separate entities instead of one integrated company.

Operational Impact (High): Corporate action teams at brokers, depositories, and custodians must process the 1:1:1 share allotment accurately. Two new ISINs will be created for the resulting companies, requiring system updates and reconciliation processes.

Impact Justification

Significant corporate restructuring involving complete demerger of two business undertakings with 1:1 share allotment ratio to existing shareholders. Stock moves to T group and special pre-open session, affecting trading and investor holdings substantially.