Welspun India to De-merge its divisions
Mumbai, September 16, 2008: Welspun India Ltd., (WIL), part of US$ 3 billion Welspun Group today announced the de-merger of its Distribution & Marketing and Investment Divisions into two separate companies at cost basis. This will allow strategic focus on specific tiers of the businesses and thus shall enable better business control, flexibility on business operations and leveraging International focus of the Group.
The Distribution & Marketing Company, which will hold all the international businesses, and Welspun Retail Limited (WRL) will be known as Welspun Global Brands Ltd. (WGBL) whereas the Investment Company will be known as Welspun Investments Ltd. (WINV). As a part of this de-merger, WGBL will issue fresh shares to Promoters and shareholders of WIL in lieu of Promoters’ and WIL’s shareholding in WRL (which is valued at cost basis) and thus WGBL will hold entire equity of WRL.
The current shareholders of WIL will be allotted new shares in WGBL and WINV i.e. – shareholders of every 100 shares in WIL will be given 10 shares of WGBL and 5 shares of WINV.
Post Demerger, Promoter and Non-Promoter shareholding in WGBL shall be 57.6% and 42.4% respectively.
Upon de-merger, both WGBL and WINV will automatically be listed separately on Indian stock exchanges i.e NSE and BSE.
The above arrangement is subject to necessary statutory and regulatory approvals. The effective date for this de-merger is proposed to be 01.04.2009
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