K.M.Sugar Mills Limited has informed the Exchange about Demerger
KMSUGAR · price
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K.M. Sugar Mills Limited's board, on August 7, 2025, approved a scheme to demerge its Distillery Division into K M Spirits and Allied Industries Limited, a wholly-owned subsidiary. The Distillery Division makes Rectified Spirit, Ethanol, Country Liquor, and Extra Neutral Alcohol, and contributed INR 91.21 crore in turnover (13.29% of the company's standalone turnover) for FY ending March 31, 2025. Under the share entitlement ratio, shareholders will receive 1 equity share of face value Rs. 10 in the resulting company for every 5 equity shares of face value Rs. 2 held in K.M. Sugar Mills. The resulting company will apply for listing on BSE and NSE. The scheme still requires approvals from SEBI, NCLT, shareholders, and creditors.
Shareholders of K.M. Sugar Mills will automatically get shares in the new listed entity (K M Spirits and Allied Industries) in addition to their existing holdings, allowing them to benefit from independent valuation of the distillery business. The demerger aims to unlock value by giving each business sharper strategic focus and potentially attracting sector-specific investors, though it is subject to multiple regulatory approvals before becoming effective.