Effective date of the Scheme of Arrangement
CELLO · price
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Cello World Limited has announced that the Composite Scheme of Arrangement involving Wim Plast Limited (WPL) and Cello Consumer Products Private Limited (CCPPL) has become effective on May 27, 2026 (with Appointed Date of April 1, 2025). Under this NCLT-sanctioned scheme: (1) WPL's manufacturing business is demerged into CCPPL (a wholly-owned subsidiary of Cello), and (2) WPL's remaining business is amalgamated with Cello World, after which WPL stands dissolved. Record Date is June 9, 2026. As consideration, Cello will allot approximately 46.5 lakh equity shares to WPL shareholders in ratios of 55 shares per 100 WPL shares (demerger) and 31 shares per 100 WPL shares (amalgamation). Authorised share capital increased to INR 140 Crores. Standalone FY26 revenue was INR 11,155 Crores with profit after tax of INR 805 Crores, down from INR 1,116 Crores in FY25. Board also recommended 30% dividend (INR 1.50 per share).
This corporate restructuring consolidates WPL's businesses into Cello World, expanding its operational scope. The share issuance will dilute existing shareholders but integrates WPL's manufacturing and remaining businesses. The profit decline year-on-year and Q4 slowdown may raise concerns, though the scheme backdating provides accounting adjustments.