Board approves demerger of two seamless pipe undertakings into two wholly owned subsidiaries

Board approves a composite scheme of arrangement — two demergers of MSL's undertakings into two wholly owned subsidiaries.

Wed 7 Oct 2026

Share Entitlement Ratio

1 share of each resulting company (INR 5 each) for every 5 MSL shares (INR 5 each)

Appointed Date

01 October 2026

Demerged Undertaking 1 Capacity

Mangaon, 125,000 MTPA + 10 MW solar at Beed

What the board has approved

The Board of Maharashtra Seamless Limited, at its meeting held today, on the recommendations of the Audit Committee and Independent Directors, has approved a composite scheme of arrangement among the company, MSL Seamless Tubes Limited ("Resulting Company 1" / MSTL) and United Seamless Limited ("Resulting Company 2" / USL), both wholly owned subsidiaries of MSL. The Appointed Date is 01 October 2026.

The scheme provides for the demerger of Demerged Undertaking 1 into MSTL and Demerged Undertaking 2 into USL.

What is being demerged

• Demerged Undertaking 1: the seamless pipe manufacturing business at Mangaon, Maharashtra (125,000 MTPA) and a captive solar power plant at Beed, Maharashtra (10 MW), with specified assets and liabilities.
• Demerged Undertaking 2: the seamless pipe manufacturing facility at Narketpally, Telangana (200,000 MTPA), solar power plants at Khetusar (20 MW) and Pokhran (5 MW) in Rajasthan, and the rig Jindal Explorer, with specified assets and liabilities.

Size in numbers (FY 2025-26 operational turnover)

• Demerged Undertaking 1: Rs. 793 crores, or 16.98% of total turnover.
• Demerged Undertaking 2: Rs. 693 crores, or 14.84% of total turnover.
• Remaining business: Rs. 3185 crores, or 68.18%.
• Total: Rs. 4671 crores.

What shareholders receive

There is no cash consideration under the scheme. In consideration of the demergers, shareholders of MSL as on the Record Date will receive:

• 1 equity share of Resulting Company 1 of INR 5 each fully paid-up for every 5 equity shares of MSL of INR 5 each fully paid-up.
• 1 equity share of Resulting Company 2 of INR 5 each fully paid-up for every 5 equity shares of MSL of INR 5 each fully paid-up.

The update states these ratios ensure the same proportionate shareholding structure in both resulting companies as in MSL, and that the scheme is value neutral to MSL shareholders.

Indicative shareholding of each resulting company

• Pre-scheme: 1,00,000 equity shares, 100% held by MSL.
• Post-scheme: 2,67,99,850 equity shares, with Promoter & Promoter Group holding 1,88,40,507 shares (70.3008%) and public holding 79,59,343 shares (29.6992%).
• These post-scheme figures are indicative and subject to the provisions for fractional entitlement in the scheme.

Listing and approvals

The equity shares of MSTL and USL will be listed and admitted to trading on BSE and NSE, subject to receipt of requisite approvals. The scheme is subject to approval of the shareholders and/or creditors of MSL, the Central Government, the jurisdictional bench of the NCLT, and such other authorities as may be directed.

Rationale stated in the update

• Focused business operations, with each undertaking run as an independent vertical.
• Technology-specific operational focus, since the facilities use different platforms (CPE at Nagothane, MPM at Mangaon, FQM at Telangana).
• Improved strategic alignment with differing growth drivers and customer ecosystems.
• Efficient capital allocation across manufacturing, drilling and renewable energy businesses.
• Integration of the renewable power assets with the corresponding business operations.
• Focused development of the rig operations.
• Improved transparency and value creation through independent financial and operational reporting.

On creditors

The update states no arrangement is proposed with the creditors of MSL or the resulting companies, and no compromise is offered to them. Liabilities towards creditors are neither reduced nor extinguished and will be assumed and discharged by the respective resulting companies in the ordinary course of business.

Nothing here is a view, opinion or recommendation of ScoutQuest, its parent, directors or employees. ScoutQuest is a technology company: this page was assembled automatically from public sources using artificial intelligence, and may contain errors or omissions. Confirm everything against the original source before you act on it. Any use of this page is at your own risk, and neither ScoutQuest nor its parent, directors or employees accepts liability for it.