KOEL gets HC nod for demerger of travel biz into separate unit

Kirloskar Oil Engines Ltd (KOEL), India's largest engine and genset manufacturer, today said it has received High Court order approving its demerger of travel services business into a separate unit.
As per the demerger scheme, Kirloskar Group transfered travel services business to a new company, Pneumatic Holdings Ltd, which would be listed separately, while merging two listed group firms.
Its listed investment arm Kirloskar Brother Investments Ltd (KBIL) and Kirloskar Oil Engines Ltd (KOEL), which specialises in the manufacturing of both air-cooled and liquid-cooled diesel engines, will be merged.
In a stock market filing, KOEL said it "has filed certified copy of High Court Order dated April 30, 2015 approving the said Composite Scheme with the Registrar of Companies, Pune on June 30, 2015.

Accordingly, pursuant to Clause 3.6 of the said scheme, effective date of the Scheme is June 30, 2015."
Shareholders of KBIL will get one equity share of face value of Rs 10 each of the new company against one equity share of the company and 76 equity shares of face value of Rs 2 each of KOEL against five equity shares of the company.

Kirloskar Group, which has over half a dozen listed firms, has been undertaking string of mergers and demergers as part of corporate restructuring.
In June 2010, the group transferred its business of engines and auto components to Kirloskar Engines India Ltd (KEIL) which got rechristened as Kirloskar Oil Engines Ltd.

Incorporated in 1946, KOEL is the flagship company of the Kirloskar group. It has four manufacturing units in India and has a sizable presence in international markets, with offices in Dubai, South Africa, and Kenya, and representatives in Nigeria.
KOEL also has a strong distribution network throughout the Middle East and Africa, the filing said.