New Delhi, Feb. 6
JK Agri Genetics Ltd (JKAGL) today said it would hive off its seeds business to a new entity, while JKAGL would continue to focus on investments. The company declined to disclose the name of the new entity, when contacted.
The shareholders of JKAGL will receive 128 fully paid-up shares of Rs 10 each of the seeds entity for every 100 shares held in JKAGL on the record date, said a company release. Preference shares issued earlier by JKAGL aggregating Rs 4,250 lakh are also being converted into equity shares of the new entity at Rs 128.33 per share of Rs 10 each. Out of total debentures of Rs 4,250 lakh, debentures of the value of Rs 977.50 lakh are also proposed to be converted to equity on the price of Rs 128.33 per share of Rs 10 each, it added.
The company's board has approved the demerger scheme.