GHCL completes demerger of its spinning business into GHCL Textiles

Chemicals major GHCL has completed the demerger of its spinning business into GHCL Textiles.

The demerger became effective from April 1 and the new entity GHCL Textiles will be listed on NSE and BSE after receiving regulatory approvals.

The "demerger aims to unlock and maximise value for all stakeholders' and focus on operations and customers. It brings forth focused leadership and addresses independent opportunities with prudent capital allocation, the company said in a statement on Monday.

"GHCL Textiles assumes all the assets and liabilities of the spinning business," it added.

As per the demerger scheme, GHCL shareholders are "to get shares of GHCL Textiles in the ratio of 1:1".

GHCL Managing Director R S Jalan said, the demerger is envisaged to create strong independent businesses uniquely positioned to enhance stakeholders' value over time.

In February, the Ahmedabad bench of NCLT approved the demerger of the spinning division of the company into GHCL Textiles.

GHCL is into manufacturing of soda ash, a major raw material for detergents and glass industries and sodium bicarbonate (baking soda).