Key Event Details
KM Sugar Mills Limited has announced that KM Spirits and Allied Industries Limited has ceased to be its subsidiary effective October 12, 2026. This follows the effectiveness of the Scheme of Arrangement for Demerger of the Distillery Division of KM Sugar Mills Limited into KM Spirits and Allied Industries Limited and their respective shareholders and creditors.
Quantitative Figures
The demerger involved allotment of 1,84,00,034 (One Crore Eighty Four Lacs Thirty Four) fully-paid up equity shares of ₹10 each by KM Spirits to eligible equity shareholders of KM Sugar Mills Limited. This allotment includes 7,319 fully paid up equity shares arising from fractional share entitlements, which have been allotted to Mr. Gurvinder Singh Monga (PAN: BIUPMBG0GM) as trustee for disposal in the market and distribution of net sales proceeds within 90 days from allotment date.
Dates of Action
- Record Date for shareholder eligibility: October 02, 2026
- Board approval of allotment by KM Spirits: October 12, 2026
- Effective date of cessation: October 12, 2026
- Previous communication date: October 01, 2026 (regarding scheme effectiveness)
Parties Involved
- Demerged Company: KM Sugar Mills Limited
- Resulting Company: KM Spirits and Allied Industries Limited
- Regulatory References: SEBI Circular No. HO/49/14/14(7)2025-CFD-POD2/1/3762/2026 dated January 30, 2026
- Individuals: Ritika Tandon (Company Secretary & Compliance Officer, KM Sugar Mills), Gurvinder Singh Monga (Company Secretary & Compliance Officer, KM Spirits)
Capital Structure Impact
- Shareholding before cessation: KM Sugar Mills held 100% of KM Spirits
- Shareholding after cessation: Nil / No controlling interest
- The existing equity shares of KM Spirits held by KM Sugar Mills stand cancelled
- The new shares allotted will rank pari passu with existing equity shares of KM Spirits
Financial and Operational Impact
The demerger results in complete separation of the distillery business from KM Sugar Mills, with KM Spirits operating as an independent company without any controlling interest from KM Sugar Mills.