Description

DCM Shriram Industries Ltd demerger into DCM Shriram Fine Chemicals Ltd and DCM Shriram International Ltd approved by NCLT. Record date set for December 19, 2025 with 1:1 share allotment ratio for both resulting companies.

Summary

BSE has announced the implementation of a Composite Scheme of Arrangement approved by the National Company Law Tribunal (NCLT), New Delhi for the demerger of DCM Shriram Industries Ltd (Scrip Code: 523369). The demerger involves splitting the company into two separate entities: DCM Shriram Fine Chemicals Ltd (Chemical Undertaking) and DCM Shriram International Ltd (Rayon Undertaking). Shareholders of the demerged company will receive shares in both resulting companies on a 1:1 basis. The record date is set for December 19, 2025.

Key Points

  • NCLT-approved Composite Scheme of Arrangement for demerger of DCM Shriram Industries Ltd
  • Chemical Undertaking to be demerged into DCM Shriram Fine Chemicals Ltd (Resulting Company 1)
  • Rayon Undertaking to be demerged into DCM Shriram International Ltd (Resulting Company 2)
  • Share exchange ratio: 1:1 for both resulting companies (1 equity share of Rs. 2/- face value in each resulting company for every 1 equity share of Rs. 2/- face value held in demerged company)
  • Trading in DCM Shriram Industries Ltd shares will be transferred from ‘B’ group to ‘T’ group
  • Special Pre-open Session (SPOS) call auction will be conducted
  • Both resulting companies’ equity shares will be listed on BSE Limited subject to compliance with formalities

Regulatory Changes

Pursuant to SEBI Circular No. SEBI/Cir/ISD/1/2010 dated November 2, 2010, trading in the equity shares of DCM Shriram Industries Ltd (Demerged Company) shall be transferred from ‘B’ group to ‘T’ group effective December 19, 2025.

Pursuant to SEBI Circular No. CIR/MRD/DP/01/2012 dated January 20, 2012, the scrip shall be part of Call Auction in Pre-open Session (Special Pre-open Session - SPOS) on December 19, 2025.

Compliance Requirements

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

Important Dates

  • Record Date: December 19, 2025 - For determining shareholder entitlement for the demerger
  • Ex-Entitlement Date: December 19, 2025 (Settlement No. DR-781/2025-2026)
  • Group Transfer Date: December 19, 2025 - Transfer from ‘B’ group to ‘T’ group
  • SPOS Date: December 19, 2025 - Special Pre-open Session call auction

Impact Assessment

Market Impact: High - The demerger represents a significant corporate restructuring that will result in three separately traded entities. The transfer to ‘T’ group indicates heightened surveillance and potential increased volatility. The SPOS mechanism will help with price discovery on the ex-date.

Shareholder Impact: High - Existing shareholders will receive shares in two new listed entities in addition to retaining their holdings in the demerged company. This 1:1:1 structure means shareholders will hold three different securities post-demerger, potentially affecting portfolio composition and liquidity considerations.

Operational Impact: The demerger separates two distinct business verticals (Chemical and Rayon), allowing each entity to focus on its core business independently. This could improve operational efficiency and strategic focus for each resulting company.

Trading Impact: The move to ‘T’ group will subject the scrip to additional restrictions and surveillance measures, potentially affecting trading volumes and liquidity during the transition period.

Impact Justification

Major corporate restructuring involving demerger of DCM Shriram Industries into two separate entities with mandatory shareholding adjustments and trading group transfer to 'T' group