SMIL said that it has received information from the promoter(s) / director(s) of the company that they have entered into a Memorandum of Family Settlement (MOFS).
The purpose of MOFS is to settle all present and future disputes among the parties i.e. Ajay Relan Family Group, Rohit Relan Family Group and Smt. Sharda Relan (promoter group) and to focus on core business segments of automotive exhaust system and other automotive components.
Under the terms of MOFS, SMIL will demerge the seating business units of the company into a new wholly-owned subsidiary of the company.
Pursuant to the above-mentioned scheme, inter-alia, transfer of company's shareholding in Bharat Seats, Toyota Boshoku Relan India Private Limited and Toyo Sharda India Private Limited to the wholly-owned subsidiary of the company.
The entire shareholding of Rohit Relan Family Group i.e. 25.19 per cent of the present paid-up capital, to be transferred, by way of gift or otherwise, to the Ajay Relan Family Group. Rohit Relan Family Group to operationally control the automobile seating business units and Ajay Relan Family Group shall continue to control and manage the company (SMIL). Upon the execution of the entire MOFS, Rohit Relan is to resign from the directorship of the company.
The stock of SMIL hit a 52-week low of Rs 1,155 on February 14, 2019, more than halved from its 52-week high level of Rs 2,344 touched on August 1, 2018, on the BSE in intra-day trade.
At 12:20 pm, Sharda Motor Industries was up 13 per cent at Rs 1,395 on the BSE. In comparison, the S&P BSE Sensex was up 0.35 per cent at 35,998 points. Bharat Seats down 2 per cent at Rs 86.45, after hitting an intra-day low of Rs 85 on the BSE so far.