| JK Industries is planning to demerge the investments of the company into a separate undertaking. The strategy is to provide the residual tyre business a better focus.
|
| |
| The company’s board has today approved the proposal of demerger. According to the demerger scheme, the investments would be transferred to a new company at their respective book value. The appointed date for the above scheme will be October 1, 2005.
|
| |
| For the purpose of demerger, the existing equity share capital of JK Industries — Rs 37.46 crore, which comprises 3.74 crore equity shares of Rs 10 each, will be allocated between JK Industries and the new company, the company informed the Bombay Stock Exchange.
|
| |
| Post-demerger, the core company will have an equity capital of Rs 28.09 crore, consisting of 2.80 crore fully paid-up equity shares of Rs 10 each. The new company will have a capital base of Rs 9.36 crore entailing 93.64 lakh fully-paid up equity shares of Rs 10 each.
|
| |
| The shareholders holding 100 equity shares of JK Industries will get 75 fully paid-up equity shares of Rs 10 each of the main company and 25 fully paid-up equity shares of Rs 10 each of the new company.
|
| |
| The company has roped in Ernst & Young and Amarchand Mangaldas and Suresh A Shroff & Co (AMSS) as advisors and legal advisors, respectively, for the demerger, it informed the BSE today. |
| |
|
| |
Content Guide
