Description

DCM Shriram Industries Ltd (523369) announces demerger of Chemical Undertaking into DCM Shriram Fine Chemicals Ltd and Rayon Undertaking into DCM Shriram International Ltd with record date of 19th December 2025 in 1:1 ratio.

Summary

BSE announces that DCM Shriram Industries Ltd (Scrip Code: 523369) has fixed 19th December 2025 as the record date for its NCLT-approved Composite Scheme of Arrangement involving demerger of 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 will receive 1 equity share of Rs. 2/- face value in each resulting company for every 1 equity share held in DCM Shriram Industries Ltd. The stock will be transferred to ‘T’ group from ‘B’ group and will trade under Special Pre-open Session (SPOS) on the record date.

Key Points

  • Record date for demerger: 19th December 2025
  • Ex-entitlement date: 19th December 2025 (Settlement No. DR-781/2025-2026)
  • Demerger approved by Hon’ble National Company Law Tribunal, New Delhi Bench
  • Two separate demergers being implemented simultaneously:
    • Chemical Undertaking → DCM Shriram Fine Chemicals Ltd
    • Rayon Undertaking → DCM Shriram International Ltd
  • Share exchange ratio: 1:1 for both resulting companies (1 share in each resulting company for every 1 share in demerged company)
  • Face value of shares: Rs. 2/- per share for all entities
  • DCM Shriram Industries stock will be transferred from ‘B’ group to ‘T’ group effective 19th December 2025
  • Special Pre-open Session (SPOS) / Call Auction will apply on 19th December 2025
  • Both resulting companies will be listed on BSE Limited subject to compliance with requisite formalities

Regulatory Changes

  • Trading group change: DCM Shriram Industries Ltd equity shares transferred from ‘B’ group to ‘T’ group effective 19th December 2025 as per SEBI Circular No. SEBI/Cir/ISD/1/2010 dated November 2, 2010
  • Special trading mechanism: Stock will be part of Call Auction in Pre-open Session (Special Pre-open Session - SPOS) on 19th December 2025 as per SEBI Circular No. CIR/MRD/DP/01/2012 dated January 20, 2012
  • Trading members should refer to BSE notice no. 20120216-29 dated February 16, 2012 for SPOS details

Compliance Requirements

  • Trading members must note the group change from ‘B’ to ‘T’ for DCM Shriram Industries Ltd
  • Trading members must follow Special Pre-open Session (SPOS) procedures on record date
  • Shareholders need not take any action; shares in both resulting companies will be automatically allotted in 1:1 ratio
  • Resulting companies must complete requisite formalities for listing on BSE Limited

Important Dates

  • 17th December 2025: Notice date
  • 19th December 2025: Record date for determining shareholder entitlement
  • 19th December 2025: Ex-entitlement date (Settlement No. DR-781/2025-2026)
  • 19th December 2025: Transfer to ‘T’ group effective date
  • 19th December 2025: Special Pre-open Session (SPOS) applicable
  • Listing date for resulting companies: To be announced subject to compliance with formalities

Impact Assessment

Market Impact: High - This is a significant corporate restructuring involving complete separation of two major business verticals (Chemical and Rayon) of DCM Shriram Industries. The transfer to ‘T’ group indicates restricted trading, which typically results in reduced liquidity and price discovery only through call auction mechanism on the record date.

Shareholder Impact: High - All shareholders will automatically receive shares in two new listed entities in addition to their existing holdings, effectively tripling their holdings across three companies (original plus two new entities). The 1:1 ratio is highly favorable and straightforward.

Operational Impact: High - Creation of two independent listed entities allows each business vertical to operate independently with dedicated management focus, potentially unlocking value. The Chemical and Rayon businesses will have separate capital structures and strategic flexibility.

Trading Impact: Trading will be restricted to call auction/SPOS on 19th December 2025, which may result in higher volatility and price discovery challenges on that day. Normal trading is expected to resume post-demerger implementation.

Impact Justification

Major corporate restructuring involving complete demerger of two business undertakings with immediate trading restrictions (transfer to T group and SPOS) and creation of two new listed entities affecting all shareholders in 1:1 ratio