Kothari Petrochemicals Limited has informed the Exchange that the Board of Directors has considered and approved the Scheme of Amalgamation of Kothari Sugars and Chemicals Limited (KSCL / Transferor Company) with and into Kothari Petrochemicals Limited (KPL / Transferee Company).
KOTHARIPET · price
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The Board of Directors of Kothari Petrochemicals Limited has approved a scheme to amalgamate Kothari Sugars and Chemicals Limited into KPL. Under the deal, KPL will issue 1 share for every 5 shares held in KSCL, with no cash consideration involved. KSCL has a net worth of Rs. 2,956 crore and turnover of Rs. 2,468 crore, while KPL has net worth of Rs. 3,723 crore and turnover of Rs. 5,914 crore. Both companies belong to the HC Kothari group, making this a related party transaction. The valuation was conducted by KPMG and a fairness opinion was obtained from Saffron Capital Advisors. The scheme requires approval from NSE, SEBI, shareholders, creditors, and NCLT.
The amalgamation will consolidate KSCL into KPL, expanding KPL's business into sugar, alcohol, and power generation while simplifying the group structure. Post-amalgamation, promoter holding will marginally increase from 72.22% to 72.50%. This could be positive for KPL shareholders as it expands scale and may create cost synergies, though the scheme is still subject to regulatory approvals.