As per the updated timeline and in line with the T+1 settlement cycle, Tuesday, December 23 was the last day for investors to purchase shares of DCM Shriram Industries to remain eligible for the benefits arising from the demerger.Because December 25 was a market holiday due to Christmas, the shares traded ex-split on December 24, meaning shares purchased on or after this date are not entitled to shares in the resulting entities.
The demerger has received approval from the National Company Law Tribunal (NCLT), New Delhi Bench, and involves the reorganization of the company’s business operations into two newly incorporated listed entities – DCM Shriram Fine Chemicals Ltd (DSFCL) and DCM Shriram International Ltd (DSIL) – in addition to the remaining company, DCM Shriram Industries. The composite arrangement also includes Lily Commercial Private Ltd.
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Under the terms of the demerger, shareholders holding shares of DCM Shriram Industries on the record date will receive shares in a ratio of 1:1:1. This means that for every share held, investors will continue to hold one share in the remaining DCM Shriram Industries and will additionally receive one fully paid equity share of Rs 2 each in DSFCL and one fully paid equity share of Rs 2 each in DSIL. For example, an investor who holds 50 shares of DCM Shriram Industries as of the registration date will retain those 50 shares and also be allotted 50 shares each in DSFCL and DSIL upon completion of necessary procedural formalities.
The shares of the two demerged entities will be credited to eligible shareholders after the implementation process is completed.
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