Aarti Industries to demerge pharma business to Aarti Pharmalabs
Shareholders of Aarti Industries will get one share of Aarti Pharmalabs for every four shares they hold.
The board of directors of Aarti Industries on August 19, 2021, has approved to restructure the business and demerger of Aarti Industries, carving out Aarti Pharmalabs, which will house its pharma business along with specialty chemicals related to the pharma sector.
The company on Thursday said the demerger will also result in Aarti Industries Limited and Aarti Pharmalabs Limited achieving operational efficiencies by streamlining the relevant businesses.
The demerger will enable Aarti Pharmalabs to expand its presence in the fast-moving Pharma Business in India and abroad.
The demerger will result into two dedicated and focused business segments i.e Speciality Chemical and Pharma without any risk or overlap of one business over the other.
Shareholders of Aarti Industries will get one share of Aarti Pharmalabs for every four shares they hold. The record date for the scheme is yet to be announced.
“The demerger will enable the Aarti Pharmalabs to expand its presence in the fast-moving pharma business in India and abroad. It will result into two dedicated and focused business segments i.e speciality chemical and pharma without any risk or overlap of one business over the other,” said the company.
The demerger is subject to requisite approvals of the National Company Law Tribunal, BSE, National Stock Exchange of India, Securities and Exchange Board of India and other statutory/regulatory authorities, including those from the shareholders.
For FY21, Aarti Pharmalabs contributed 19.8% of total revenue for Aarti Industries. In the June quarter, the share stood at 18.4%. Aarti Industries said the part of the specialty chemical business that is going to its pharma unit accounts for less than 3% of the revenues of the speciality chemical business.
The resulting company Aarti Pharmalabs will make an application with the BSE and the National Stock Exchange of India for listing of its equity shares.
On Thursday, shares of Aarti Industries were trading down 2.61% at Rs 932.25 on NSE.
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