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    Aarti Industries board okays demerger of pharma unit; shareholders get 1 share for every 4 they own

    Synopsis

    “The demerger will enable the Aarti Pharmalabs to expand its presence in the fast moving pharma business in India and abroad.It will result into two dedicated and focused business segments i.e speciality chemical and pharma without any risk or overlap of one business over the other,” said the company.

    Aarti-Industries-website
    NEW DELHI: The board of directors of Aarti Industries has approved the demerger of Aarti Industries, carving out Aarti Pharmalabs, which will house its pharma business along with specialty chemicals related to the pharma sector.

    The company on Thursday said the demerger will also result in Aarti Industries Limited and Aarti Pharmalabs Limited achieving operational efficiencies by streamlining of the relevant businesses.

    Shareholders of Aarti Industries will get one share of Aarti Pharmalabs for every four shares they hold. The record date for the scheme is yet to be announced.

    “The demerger will enable the Aarti Pharmalabs to expand its presence in the fast moving pharma business in India and abroad.It will result into two dedicated and focused business segments i.e speciality chemical and pharma without any risk or overlap of one business over the other,” said the company.

    The demerger is subject to requisite approvals of the National Company Law Tribunal, BSE, National Stock Exchange of India, Securities and Exchange Board of India and other statutory/regulatory authorities, including those from the shareholders.

    For FY21, Aarti Pharmalabs contributed 19.8 per cent of total revenue for Aarti Industries. In the June quarter, the share stood at 18.4 per cent. Aarti Industries said the part of the specialty chemical business that is going to its pharma unit accounts for less than 3 per cent of the revenues of the speciality chemical business.

    The public and promoter shareholding for both companies will remain the same. Currently promoters hold 44.90 per cent in Aarti Industries and public shareholders hold 55.10 per cent.

    The Board seeks to list Aarti Pharmalabs on BSE and NSE post demerger.

    On Wednesday, shares of Aarti Industries ended up 0.50 per cent at Rs 957.10 on BSE. In the last one year, the stock has returned about 88 per cent.



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    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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