Description
DCM Shriram Industries Ltd. has revised the record date to December 26, 2025 for demerger into DCM Shriram Fine Chemicals Ltd. and DCM Shriram International Ltd.
Summary
DCM Shriram Industries Ltd. (Scrip Code: 523369) has revised the record date for its court-approved demerger from December 17, 2025 to December 26, 2025. The composite scheme of arrangement involves splitting the company into two separate entities: DCM Shriram Fine Chemicals Ltd. (receiving the Chemical Undertaking) and DCM Shriram International Ltd. (receiving the Rayon Undertaking). Shareholders will receive equity shares in both resulting companies in a 1:1 ratio for each share held in the demerged company.
Key Points
- Revised record date: December 26, 2025 (previously December 17, 2025)
- Ex-entitlement date: December 26, 2025 (Settlement No. DR-785/2025-2026)
- Demerger approved by Hon’ble National Company Law Tribunal, New Delhi
- Two-way demerger creating two separate listed entities
- Share exchange ratio: 1:1 for both resulting companies
- Face value of all shares: Rs. 2/- each
- DCM Shriram Industries Ltd. shares will be transferred from ‘B’ Group to ‘T’ Group effective December 26, 2025
- Special Pre-open Session (SPOS) call auction will apply on December 26, 2025
- Both resulting companies will be listed on BSE Limited subject to compliance with formalities
Regulatory Changes
Trading Group Transfer: Pursuant to SEBI Circular No. SEBI/Cir/ISD/1/2010 dated November 2, 2010, equity shares of DCM Shriram Industries Ltd. will be transferred from ‘B’ Group to ‘T’ Group (Trade-to-Trade segment) effective December 26, 2025.
Call Auction Mechanism: Pursuant to SEBI Circular No. CIR/MRD/DP/01/2012 dated January 20, 2012, the scrip will be part of Call Auction in Special Pre-open Session (SPOS) on December 26, 2025.
Compliance Requirements
For Trading Members:
- Note the revised record date and ex-entitlement date
- Be aware of trading group change from ‘B’ to ‘T’ effective December 26, 2025
- Follow Special Pre-open Session procedures on December 26, 2025 (refer to Exchange notice no. 20120216-29 dated February 16, 2012)
- Inform clients about the demerger and share allotment details
For Shareholders:
- Shareholders as on record date December 26, 2025 will be entitled to receive shares in both resulting companies
- Each shareholder will receive 1 equity share of DCM Shriram Fine Chemicals Ltd. for every 1 share held in DCM Shriram Industries Ltd.
- Each shareholder will receive 1 equity share of DCM Shriram International Ltd. for every 1 share held in DCM Shriram Industries Ltd.
Important Dates
| Date | Event |
|---|---|
| December 17, 2025 | Original record date (now revised) |
| December 26, 2025 | Revised record date for determining shareholder entitlement |
| December 26, 2025 | Ex-entitlement date (Settlement No. DR-785/2025-2026) |
| December 26, 2025 | Transfer to ‘T’ Group effective date |
| December 26, 2025 | Special Pre-open Session (SPOS) call auction |
Impact Assessment
Market Impact:
- High impact event due to major corporate restructuring of a listed company
- Trading restrictions apply with transfer to T Group (Trade-to-Trade segment), limiting intraday trading
- Call auction mechanism will determine opening price on ex-date, potentially causing price discovery volatility
- Creation of two new listed entities will provide pure-play exposure to chemicals and rayon businesses separately
Shareholder Impact:
- Shareholders will hold three securities post-demerger instead of one
- No dilution of economic interest as share exchange ratio is 1:1 for both entities
- Potential for enhanced value unlock through separation of distinct business verticals
- Increased portfolio diversification with exposure to two independent companies
Operational Impact:
- Demerged company (DCM Shriram Industries) will continue as a separate entity after transferring Chemical and Rayon undertakings
- DCM Shriram Fine Chemicals Ltd. will operate the chemical business independently
- DCM Shriram International Ltd. will operate the rayon business independently
- Both resulting companies will require separate tracking and monitoring by investors and analysts
Impact Justification
Major corporate restructuring involving demerger of a listed company into two entities with 1:1 share allotment ratio, transfer to T group, and mandatory call auction session