Demerger update: Resulting Company board approves allotment of 1,84,00,034 equity shares to eligible shareholders

Demerger update: The Resulting Company's Board has approved allotment of 1,84,00,034 fully-paid equity shares of INR 10/- each to eligible shareholders of the Demerged Company as on the Record Date, October 02, 2026.

Mon 12 Oct 2026

Shares Allotted

1,84,00,034 fully-paid equity shares of INR 10/- each

Record Date

October 02, 2026

Fractional Entitlement Shares

7,319 shares allotted to a Trustee; net proceeds distributed within 90 days

Demerger update: allotment of shares completed

The Scheme of Arrangement for the demerger of the Distillery Division of K M Sugar Mills Limited into K M Spirits and Allied Industries Limited has moved to the share-allotment stage. The Scheme was declared effective on October 01, 2026.

What has been approved

• The Board of the Resulting Company, at its meeting held on October 12, 2026, approved the allotment of 1,84,00,034 fully-paid up equity shares of INR 10/- each to the eligible equity shareholders of the Demerged Company.
• Eligibility is based on names appearing in the Register of Members / records of depositories as on the Record Date, October 02, 2026.
• The shares allotted shall rank pari passu in all respects with the existing equity shares of the Resulting Company.

Cancellation of the shares held by the Demerged Company

• Simultaneously with the allotment, and pursuant to Clause 3.1.4 of the Scheme, the existing equity shares of the Resulting Company held by the Demerged Company stand cancelled.
• Accordingly, the Resulting Company ceases to be a subsidiary of the Demerged Company.

Fractional entitlements

• The allotment also includes 7,319 fully paid up equity shares arising out of the fractional share entitlements of eligible equity shareholders of the Demerged Company.
• These were allotted to Mr. Gurvinder Singh Monga, the Trustee appointed by the Board of the Resulting Company to dispose of the fractional entitlements in the market and distribute the Net Sales Proceeds.
• That distribution is to be completed within 90 days from the date of allotment of shares.

Listing and trading

• The Resulting Company is in the process of making the necessary applications to the stock exchanges for listing and obtaining trading approval for the allotted equity shares.

What this means in simple terms

• This is a completion-stage step in the demerger: shareholders of the Demerged Company have now been allotted shares of the Resulting Company as per the Scheme, and the Resulting Company is no longer a subsidiary of the Demerged Company.
• The allotted shares are not yet available for trading; trading follows the listing and trading approval from the stock exchanges.
• Where a shareholder's entitlement worked out to a fraction of one share, that fraction is not given directly; the Trustee sells those shares and the net sales proceeds are distributed to those shareholders within the stated 90 days.

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