Key Details
Symbol (NSE): PRECOT
Corporate Action: Demerger through Composite Scheme of Arrangement
Record Date: Not Specified
Nature of Scheme: Demerger of identified non-core assets unconnected with the business or operations of the company
Entities Involved:
- Transferor Company: Precot Limited
- Resulting Company: Separate resulting entity (name not specified)
- Other Entity: Suprem Associates (partnership firm holding immovable property)
Demerged Company: Precot Limited
Resulting Company: Separate unlisted entity
Share Entitlement Ratio: Not Specified
Implied Capital Structure Impact: Not Specified
Post-Allotment Listing Plan: The resulting company will NOT be listed
Regulatory and Approval Status:
- Board of Directors granted in-principle approval on 13th November 2026
- Scheme requires approval from shareholders, creditors, National Company Law Tribunal (NCLT), Stock Exchange, and other regulatory authorities
- Management authorized to undertake necessary steps including evaluation, finalization of scheme, appointment of professionals and consultants
Effective Date: Not Specified
Financial Rationale:
- Separate non-core assets from the business/operations/plans of the Company
- Allow management and capital to focus on expansion, modernization and growth
- Improve transparency and enable independent value discovery
Impact on Shareholders:
- Existing non-promoter shareholders of Precot Limited would receive appropriate compensation for the shares proposed to be allotted in the resulting entity
- Compensation value to be determined by an independent valuer
- No change in shareholding pattern mentioned for any entities
Additional Financial Details:
- Turnover of the demerged division: NIL (0% of total turnover)
- The non-core assets include the Company's investment in Suprem Associates, a partnership firm principally holding an immovable property
- The scheme is being undertaken under Sections 230-232 of the Companies Act, 2013