Notice of Court Convened Meeting of Unsecured Creditors of the Company for their requisite approval on the proposed Scheme of Arrangement for Demerger amongst Km Sugar Mills Limited ('Demerged Company/The Company') and K m Spirits and Allied Industries Limited (Resulting Company)
KMSUGAR · price
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K.M. Sugar Mills Limited (KMSM) has issued notice for an NCLT-convened meeting of its unsecured creditors on May 30, 2026 (12:30 PM IST, via video conferencing) to seek approval for a proposed Scheme of Arrangement for Demerger. Under the scheme, the distillery and allied spirits business of KMSM will be demerged into KM Spirits and Allied Industries Limited (KMSAIL), which is currently a wholly owned subsidiary of KMSM. KMSM will continue to house the sugar manufacturing and bagasse-based cogeneration power businesses. The NCLT Allahabad Bench, via its order dated March 24, 2026, directed the convening of this meeting. Both BSE (Jan 13, 2026) and NSE (Jan 12, 2026) have issued 'no-objection' observation letters on the scheme. KMSM has secured creditors of Rs. 29.66 crore and unsecured creditors of Rs. 9.84 crore as on Oct 31, 2025. Share Entitlement Report by Axiology Valuetech and Fairness Opinion by Corporate Professionals Capital have been obtained.
The demerger will separate the distillery/spirits business from the sugar business, potentially allowing investors to value each business independently. Shareholders should track the outcome of the creditors' meeting and the subsequent NCLT approval, as well as any share entitlement ratio that gets announced for the resulting entity. No immediate impact on share price is expected from the notice itself, which is a procedural step in an already-filed scheme.