Demerger of Distillery Division becomes effective; NCLT order shared with Registrar of Companies

K M Sugar Mills has informed the exchanges that the Scheme of Arrangement for demerger of its Distillery Division has become effective.

Thu 1 Oct 2026

Effective Date of Scheme

October 01, 2026

NCLT Order Shared with RoC

October 01, 2026

NCLT Bench

Allahabad Bench

Demerged Undertaking

Distillery Division

Resulting Company

KM Spirits and Allied Industries Limited

The demerger moves from approval to effect

K M Sugar Mills Limited has informed the stock exchanges that the Scheme of Arrangement for demerger of its Distillery Division has become effective.

What the update sets out

• The Demerged Undertaking is the Distillery Division of K M Sugar Mills Limited (the Demerged Company).
• The Resulting Company is KM Spirits and Allied Industries Limited.
• The Scheme covers the respective shareholders and creditors of both companies.
• The Scheme was sanctioned by the Hon'ble National Company Law Tribunal, Allahabad Bench.
• Both the Demerged Company and the Resulting Company have submitted a certified true copy of the NCLT Order with the Registrar of Companies, Uttar Pradesh - I, on October 01, 2026.
• The Effective Date of the Scheme is October 01, 2026.

The sequence

This intimation is stated to be in continuation of the company's earlier intimation dated September 19, 2026, in which the effective date and the record date for the Scheme were informed.

With the certified copy of the NCLT Order shared with the Registrar of Companies and the Effective Date reached, the Scheme of Arrangement contemplating the demerger has become effective.

What this means in simple terms

A demerger splits one company's business into two. Here, the Distillery Division is being separated from K M Sugar Mills Limited and moved into a separate company, KM Spirits and Allied Industries Limited. Shareholders of the Demerged Company are covered by the Scheme as sanctioned by the NCLT, and the terms on which they participate are those set out in the Scheme and in the earlier intimations referenced in this update.

The update is an update on the completion of a step already sanctioned by the NCLT, and it states that the Scheme has now become effective.

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