Description

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

Summary

BSE announced that DCM Shriram Industries Ltd. (Exchange ticker: 523369) will be removed from multiple BSE indices effective December 19, 2025, due to a scheme of arrangement involving demerger of its Chemical undertaking into DCM Shriram Fine Chemicals Ltd. and Rayon Undertaking into DCM Shriram International Ltd. The stock will be dropped from BSE SMALLCAP, BSE ALLCAP, BSE FAST MOVING CONSUMER GOODS, and BSE MIDSMALLCAP indices with no replacement additions.

Key Points

  • DCM Shriram Industries Ltd. (523369) is undergoing demerger of two business divisions
  • Chemical undertaking will be demerged into DCM Shriram Fine Chemicals Ltd.
  • Rayon Undertaking will be demerged into DCM Shriram International Ltd.
  • The stock will be removed from four BSE indices with no additions to replace it
  • Changes included in end-of-day corporate action file (*.SDE)
  • Effective date for all index changes is December 19, 2025

Regulatory Changes

No regulatory policy changes. This is a routine index rebalancing action in response to a corporate restructuring event.

Compliance Requirements

  • Market participants tracking these indices should note the removal for portfolio rebalancing
  • Index funds and ETFs tracking affected indices will need to adjust holdings
  • Investors should refer to the end-of-day corporate action file for technical implementation details
  • Queries can be directed to bseindex@bseindia.com

Important Dates

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

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: Medium impact limited to passive funds and investors tracking these specific indices. The demerger will result in index fund rebalancing as the stock is removed without replacement. The event is part of a corporate restructuring strategy where the parent company’s business units will operate as separate listed entities. Shareholders of DCM Shriram Industries will receive shares in the two demerged entities as per the scheme of arrangement.

Impact Justification

Removal of a company from multiple BSE indices due to corporate restructuring affects index composition and passive fund rebalancing, but is a single-company event with limited broader market impact.