Welspun India to de-merge its divisions

Welspun India (WIL), one of the leading Home textiles majors and part of the Welspun group has announced the de-merger of its Distribution & Marketing and Investment Divisions into two separate companies at cost basis.

The textiles major said that such a re-structuring will allow it to have strategic focus on specific tiers of the businesses and therefore will enable better business control, flexibility on business operations and leveraging international focus of the group.
 
The Distribution & Marketing company will be re-christened as Welspun Global Brands (WGBL) where as the Investment arm will known as Welspun Investments (WINV). WGBL will hold all the international businesses and Welspun Retail (WRL).
 
In a statement, the company said, "As a part of this de-merger, WGBL will issue fresh shares to promoters and shareholders of WIL in lieu of promoters' and WIL's shareholding in WRL and thus WGBL will hold entire equity of WRL."
 
The current shareholders of WIL will be allotted new shares in WGBL and WINV (shareholders of every 100 shares in WIL will be given 10 shares of WGBL and 5 shares of WINV).
 
Post de-merger, promoter and non-promoter shareholding in WGBL will be 57.6 per cent and 42.4 per cent respectively. The effective date of the de-merger is proposed to be 1 April, 2009, the company said.