Kesoram Industries Limited’s shares rose 4.99 per cent after the company’s board approved a Composite Scheme of Arrangement for the demerger of its cement division into UltraTech Cement Limited, aimed at unlocking value for shareholders and deleveraging the balance sheet.
The share exchange ratios, proposed by independent valuers, include 1 equity share of UltraTech for every 52 equity shares of KIL, along with the reduction and cancellation of preference share capital. According to the company, this move is expected to reduce debt and interest outflow, providing shareholders with UltraTech shares and continued participation in the cement business’s value creation.
The transaction is subject to regulatory approvals and is anticipated to conclude within 9-12 months. JM Financial Limited is the exclusive financial advisor, PwC Business Consulting Services LLP, and Bansi S. Mehta & Co. are the independent joint valuers, and Khaitan & Co, Kolkata, serves as the legal advisor to the Company.
The shares rose 4.99 per cent to ₹146.05 at 1.40 pm on the BSE.