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| Exchange Received Time 13/11/2018 14:10:22 Exchange Disseminated Time 13/11/2018 14:10:31 Time Taken 00:00:09 | 1. The Board in-principally decided to hive-off the Paint Division of the Company into a separate company (Resulting Company) through a Scheme of Arrangement on mirror shareholding basis (i.e., the percentage shareholding of each of the shareholders of the Demerged Company would remain the same in the Resulting Company).
The Paint Division of the Company comprises with the paint manufacturing facilities and all other assets and liabilities including the factory land and building at Industrial Plot No. E-538 & E-539 situated at RIICO Industrial Area, Chopanki, Bhiwadi- 301017, Dist. Alwar (Rajasthan). The segmental financial performance of the Company as per the audited financial statement for the last financial years ended March 31, 2018 and March 31, 2017 is annexed herewith as Annexure-1.
The Board discussed that the restructuring in the Company by hiving off the paint division into a separate company, inter-alia, would result in the following:
Better scope for independent growth of Steel & Paint Divisions
Independent & better management focus on of Steel & Paint Divisions
Better Operational Efficiency
Different Valuation and Investment parameter for Steel & Paint Divisions
Unlocking of value by listing both the divisions in two separate companies.
It was discussed that the Draft Scheme of Arrangement (inter-alia, comprising the share swap ratio), Valuation Certificates and connected documents should be placed in the next Board Meeting of the Company, which will be informed in due course.
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