Nagarjuna Fertilizers and Chemicals Ltd has decided to restructure its group companies into two separate entities —one for fertilisers and chemicals and another for its oil business.
The board approved the proposal on Monday, under which the oil business undertaking of NFCL would be demerged into Nagarjuna Oil Refinery Ltd (NORL) and the residual NFCL would be merged with Ikisan Limited and Kakinada Fertilizers Ltd (KFL) to form Nagarjuna Fertilisers Ltd.
According to the plan, the share allotment for demerger of oil business would be one equity share of Rs 1 each of NORL for one equity share of Rs10 each of NFCL; and one preference share of Rs 10 each of NORL for every preference share of Rs100 each of NFCL.
For merger of residual NFCL into KFL, 11 equity shares of Rs 1 each of KFL for every ten equity shares of Rs 10 each of NFCL; and one preference share of Rs 90 each of KFL would be allotted for every preference share of Rs 100 each held in NFCL.
As for the merger of Ikisan with KFL, 43 equity shares of Rs 1 each of KFL would be allotted for every ten equity shares of Rs10 each held by the shareholders in iKisan.
This scheme of amalgamation would be subject to the approval of shareholders, lenders, creditors, the stock exchanges, high courts of Bombay and Andhra Pradesh, and the permission of the central government and other statutory or regulatory authorities.
Following the implementation of the scheme, the share capital of KFL would be Rs59.81 crore and that of NORL Rs 42.82 crore, it said in a filing to the BSE.