Key Details

Symbol (NSE): KOTARISUG

Corporate Action: Amalgamation

Record Date: Not Specified

Nature of Scheme: Amalgamation of Kothari Sugars and Chemicals Limited (Transferor Company) with and into Kothari Petrochemicals Limited (Transferee Company)

Entities Involved:

  • Transferor Company: Kothari Sugars and Chemicals Limited (KSCL)
  • Transferee Company: Kothari Petrochemicals Limited (KPL)
  • Resulting Company: Kothari Petrochemicals Limited (after amalgamation)

Demerged Company: Not Applicable (Amalgamation scheme)

Resulting Company: Kothari Petrochemicals Limited

Share Entitlement Ratio: 1 (One) fully paid-up equity share of ₹10 each of Kothari Petrochemicals Limited shall be issued and allotted for every 5 (Five) fully paid-up equity shares of ₹10 each held in Kothari Sugars and Chemicals Limited

Implied Capital Structure Impact:

  • The existing issued and paid-up equity shareholding of KSCL shall stand cancelled and extinguished
  • Authorized share capital of KSCL shall stand transferred to and combined with authorized share capital of KPL
  • Post-scheme share capital of KPL will increase due to issuance of new shares to KSCL shareholders

Post-Allotment Listing Plan: The resulting entity (Kothari Petrochemicals Limited) will remain listed on National Stock Exchange of India Limited

Regulatory and Approval Status:

  • NCLT Chennai Bench approved convening of unsecured creditors meeting on 30 September 2026
  • Shareholder approval pending - meeting scheduled for 13 November 2026
  • SEBI/NSE provided no adverse observations via letter dated 19 August 2026
  • Scheme conditional upon necessary sanctions and approvals

Effective Date: Not Specified (Appointed Date: 1 April 2026)

Financial Rationale:

  • Simplify and rationalize existing group structure under common control
  • Eliminate duplication of administrative, operational, regulatory, and compliance costs
  • Improve financial strength through combined balance sheet and diverse strategic options
  • Generate economies of scale through integration of managerial expertise and operational infrastructure
  • Enable better utilization of resources and improved productivity
  • Enhance capacity to pursue future growth opportunities and improve long-term value creation
  • Consolidate funds and resources for improved capital allocation

Impact on Shareholders:

  • KSCL shareholders will receive KPL shares in 1:5 ratio
  • KSCL will stand dissolved without winding up after amalgamation
  • No break or interruption in employment for KSCL employees who will become KPL employees
  • Creditors of KSCL will become creditors of KPL on same terms and conditions
  • Promoter shareholding in combined entity expected to be 72.50% post-scheme