The Hindu Business Line : Suryalakshmi Cotton to demerge yarn division

THE board of directors of Suryalakshmi Cotton Mills Ltd (SCML) at its meeting held on Friday approved the proposal of de-merger of its yarn division after considering various restructuring options.

The company informed the stock exchanges that its yarn-manufacturing unit located at Mahabubnagar, including the dyeing plant, would be transferred to a newly incorporated company - Rajvir Industries Ltd - with effect from September 1 this year.

The company said it would continue with denim operations, including the yarn division at Amanagallu in Mahabubnagar district, for its captive needs.

On the de-merger of yarn unit of Mahabubnagar, the company said a scheme of arrangement would be prepared in accordance with provisions of the Companies Act, 1956 and Income-Tax Act, 1961 for clearance from the board, stock exchanges and other necessary statutory approvals.

According to the company, its shareholders would participate in the capital of the new company (Rajvir Industries) in a proportion to be determined by independent professional accountants.

Subject to all compliances, shares of the new company (Rajvir Industries) would also be listed on the stock exchanges, the company said.

More Stories on : Restructuring | Textiles

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page