Mumbai: Kesoram Industries Ltd awaits formal approval by the Securities Exchange Board of India (SEBI), on the demerger of Kesoram’s tyre business into an independent company, Birla Tyres Ltd (BTL).
The announcement for demerger was made in December last year with the primary motive to realign and recalibrate operations. Subsequently, the flagship company of BK Birla Group moved the SEBI for its consent. Pursuant to approval by SEBI, Kesoram will move the NCLT for approval. The entire process of the proposed demerger is expected to be completed by July.
The applicant company is one of the pioneer companies in India under the flagship of B K Birla Group of Companies, with its products ranging from tires to cement to rayon.
With the inception of the proposed independent company, BTL is deemed to be a listed company with its shareholding pattern being in sync with that of Kesoram Industries.
As of March 2018, the accounts of Kesoram denoted a total debt of Rs.3,624 crores. The expected demerger process, out of the total debt, shall bear an amount ranging between Rs. 500 to Rs. 1,000 crores. Whereas, the cement business is likely to bear around Rs. 2,500 to Rs. 3,000 crores.