K.M.Sugar Mills Limited has informed the Exchange about Scheme of Arrangement
KMSUGAR · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
K.M. Sugar Mills has received the NCLT Allahabad Bench order dated March 24, 2026, allowing its First Motion Application for the proposed demerger of its Distillery Division into wholly-owned subsidiary KM Spirits and Allied Industries Limited. Under the scheme, shareholders of K.M. Sugar Mills will get 1 equity share of Rs. 10 face value in the resulting company for every 5 equity shares of Rs. 2 face value held in K.M. Sugar Mills. NSE and BSE had already issued no-objection letters in January 2026, and the appointed date for the demerger is April 1, 2026. The NCLT has directed that meetings of equity shareholders and unsecured creditors of K.M. Sugar Mills be held on May 30, 2026, while dispensing with the secured creditors' meeting (96.23% consent already received) and all meetings of the resulting company (100% consents obtained). The resulting company is proposed to be listed on the stock exchanges, giving shareholders a separate, focused pure-play distillery entity.
If approved, shareholders of K.M. Sugar Mills will receive shares in the new listed entity KM Spirits, allowing them to hold separate pure-play exposures to the sugar/power business and the higher-growth distillery/ethanol business. This is a corporate restructuring milestone, not a cash event, and the stock may see re-rating based on independent valuation of the two businesses once the scheme is fully implemented.