The board approved a scheme of arrangement for demerger of the cement business of the company into UltraTech Cement.
Shares of Century Textiles and Industries touched 52-week low of Rs 976.75, slipping 8.5 percent in the opening trade on Monday post demerger of its cement business.
The board approved a scheme of arrangement for demerger of the cement business of the company into UltraTech Cement.
The cement division of the company consists of 3 integrated cement units with a total capacity of 11.4 MTPA (excludes 1.2 MTPA for which statutory clearance is pending) and 1 grinding unit of 2 MTPA.
According to the scheme, the shareholders of Century would get 1 equity share of UltraTech for every 8 equity shares of Century of face value Rs 10 each.
The transaction is subject to the necessary statutory and regulatory approvals including approvals of the NCLT, the Stock Exchanges, SEBI, Competition Commission of India (CCI), the respective shareholders and lenders / creditors of each of the companies.
The transaction is expected to be completed in the next 6 to 9 months.
At 09:19 hrs Century Textiles was quoting at Rs 997.95, down 6.42 percent and UltraTech Cement was quoting at Rs 3,975, up 3 percent.
Posted by Rakesh Patil