KK Birla Group entities Oudh Sugar Mills Ltd (OSML) and Upper Ganges Sugar Industries Ltd (UGSIL) have informed the stock exchanges that there are proposals to restructure various businesses of the group.

According to the firms, their respective boards have approved two separate schemes of arrangements for the proposed restructuring. The schemes will undergo Allahabad High Court approved processes.

The group companies, now controlled by the Nopany family and led by Nandini Nopany, late KK Birla’s daughter, also said the aim of the restructuring is to consolidate sugar units located in Uttar Pradesh and Bihar under two different listed entities. Currently, both OSML ad UGSIL have sugar units in the two States. The other existing businesses of the group, such as tea plantation and investments, will also change their umbrella entities.

OSML said it plans to demerge its food processing and investments businesses to Palash Securities, another group entity. The share swap ratio has been fixed at 27 shares of Palash for 70 shares OSML. Also, the food processing business will be transferred from Palash to its 100 per cent subsidiary, Allahabad Canning. It also plans to transfer the Bihar Sugar business undertaking of OSML to its 100 per cent subsidiary, Vaishali Sugar.

Vaishli Sugar will be merged with Magadh Sugar at a swap ratio of 276 shares of Magadh for 13 shares of Vaishali. The proposed swap ratio for UGSIL as compensation for its Bihar Sugar assets will be 88 shares of Magadh for 113 shares of UGSIL.

The Uttar Pradesh sugar businesses of both OSML and UGSIL will be consolidated into Avadh Sugar (share swap ratio — two Avadh Sugar for every nine shares of OSML). Oudh Sugar). UGSIL shareholders will get 11 shares of Avadh Sugar for 30 held.

Tea business

UGSIL plans to demerge its tea and investment businesses to Ganges Securities. Existing UGSIL shareholders will get 77 shares of Ganges Securities for 89 shares held.

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