Shares of India Glycols jumped nearly 5% after the company’s recent split into three focused entities took effect, marking a significant restructuring that investors are closely watching for future prospects and listings.
India Glycols shares rose as much as 5% on Wednesday after the company’s demerger into three separately focused businesses took effect on September 1, following approval from the National Company Law Tribunal. The stock touched an intraday high of Rs 236.20 before ending the session at Rs 236.20, up 4.98% from the adjusted previous close, in the first trading day after the restructuring.
The split leaves India Glycols Limited as the listed chemicals arm, covering glycols, bio-glycols, speciality products and industrial gases. In the June quarter, that business reported revenue of Rs 345 crore and EBITDA of Rs 40.2 crore. The larger liquor and biofuels operation has been hived off into IGL Spirits Limited, which posted sales of Rs 694 crore and EBITDA of Rs 120 crore for the same period. Ennature Bio Pharma Limited will hold the biopharma and biopolymers businesses, with June-quarter revenue of Rs 90 crore and EBITDA of Rs 10 crore.
September 2 has been set as the record date for share entitlement. Investors will receive one IGL Spirits share for each India Glycols share they own, and one Ennature Bio Pharma share for every three India Glycols shares held. Both new companies plan to seek separate listings on the NSE and BSE. Before the demerger, the combined group had reported June-quarter revenue growth of 8.65% and a rise of nearly 33% in net profit from a year earlier.
Analysts and investors will now be watching how debt and assets are allocated between the three entities, as well as the timetable for the proposed listings. The market’s initial reaction suggests traders are trying to value each business on its own prospects rather than as part of a diversified conglomerate.
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