The board of directors of Bhagyanagar India and Surana Telecom and Power in their respective meetings have approved the proposal to demerge the solar business of Bhagyanagar and merge it with the latter.
Pursuant to the scheme of arrangement, Surana Telecom will issue and allot two fully paid-up equity shares of ₹1 each to the shareholders of Bhagyanagar India for every three shares of ₹2 each held by them.
According to the scheme approved by the respective board of directors, the demerger is proposed to be undertaken through a court-approved scheme of arrangement.
April 1, 2016, has been chosen as the appointed date for the transaction.
Under the scheme, Bhagyanagar India will transfer its solar business to Surana Telecom and in consideration, Surana will issue shares to Bhagyangar India shareholders. Post the scheme, the promoters’ shareholding in Surana Telecom will come down from 74.59 per cent to 72.42 per cent.
The proposed scheme of arrangement will be subject to the approval of the High Court at Hyderabad.
The restructuring will be further subject to various statutory approvals, including those from the shareholders and the lenders.