Magnum Ventures Limited has informed the Exchange about Demerger
MAGNUM · price
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Awaiting price reaction for this filing.
The Board of Magnum Ventures Limited has approved a Scheme of Arrangement on February 27, 2026, to demerge its Paper Business into Magnum Paperz Limited as a going concern, while the company retains the Hotel Business (Country Inn & Suites by Radisson, an all-vegetarian five-star hotel in Sahibabad). The Paper Business contributed Rs. 29,657.46 lakhs or 75% of FY25 turnover, with total company turnover at Rs. 39,725.55 lakhs. As consideration, shareholders will receive 2 new equity shares of Rs. 10 each in Magnum Paperz for every 10 equity shares held, and 9 new compulsorily redeemable preference shares for every 10 held. Magnum Ventures will simultaneously reduce its equity capital by 70% (7 of every 10 shares cancelled) and preference capital by 90%, leaving each shareholder with 3 equity shares in Magnum Ventures plus 2 in Magnum Paperz per original 10 shares. No cash consideration is involved, and listed NCDs will transfer to Magnum Paperz on existing terms. The scheme now requires approvals from BSE, NSE, SEBI, shareholders, creditors, and NCLT sanction.
Shareholders will end up holding shares in two listed entities mirroring their original proportion — 30% in the hotel-focused Magnum Ventures and 20% in the new paper-focused Magnum Paperz. The paper unit is the larger revenue driver (75% of sales), so the de-merger effectively splits the dominant business from the smaller hotel asset, which could change how each business is valued separately. Watch for the record date, NCLT timeline, and final listing of Magnum Paperz shares and transferred NCDs.