Deepak Fertilisers and Petrochemicals Corporation has completed the process of demerging its core business — fertiliser and technical ammonium nitrate — into a wholly-owned subsidiary Smartchem Technologies.

The National Company Law Tribunal has recently approved the aforesaid restructuring and the company has filed the NCLT order with the Registrar of Companies with effect from May 1, said the company in a statement on Friday.

As part of the scheme, the industrial chemicals, the home lifestyle and retail arm Ishanya will continue to operate under DFPCL.

The scheme of arrangement does not involve any exchange or issue of additional shares as the transfer of the undertakings has been undertaken as a wholly-owned subsidiary of the listed entity.

The existing shareholders of DFPCL continue to remain unaffected with their economic interest as well as their status of shareholding, said Deepak Fertilisers.

The restructuring aims to enhance management focus for future growth, improving operational efficiency providing impetus to charting growth plan and generating incremental stakeholder value.

The envisaged restructuring is also well aligned with the changing economic and business environment of the country, it added.

Sailesh Mehta, Chairman and Managing Director, Deepak Fertilisers, said the move is aimed at future growth and providing ample room to each of the two businesses which has achieved scale and geographical spread.

While shareholders will remain unaffected by the scheme of arrangement, they will benefit from enhanced focus on bringing higher accountability to improve performance across all business verticals with building case for higher investments in respective business vertical, he said.

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