The NCLT Allahabad Bench sanctioned a Scheme of Arrangement involving K.M. Sugar Mills Ltd. and KM Spirits and Allied Industries Ltd., under which K.M. Sugar Mills’ Distillery Division will be demerged into the resulting company.
The restructuring separates the Distillery Division into a dedicated entity, with shareholders of K.M. Sugar Mills becoming shareholders of KM Spirits and Allied Industries Ltd.
Key Demerger Details
Appointed Date: April 1, 2026
Effective Date: October 1, 2026
Record Date: October 2, 2026
The Effective Date represents the date on which the NCLT order is filed with the Registrar of Companies by the relevant companies.
Share Entitlement / Ratio
Eligible K.M. Sugar Mills shareholders will receive:
1 fully paid-up equity share of KM Spirits and Allied Industries Ltd. of â‚ą10 face value for every 5 equity shares of K.M. Sugar Mills Ltd. of â‚ą2 face value held as of the Record Date.
For example, a shareholder holding 500 K.M. Sugar Mills shares on the Record Date would be entitled to 100 shares of KM Spirits and Allied Industries Ltd.
Listing Details
The shares proposed to be allotted to eligible shareholders pursuant to the demerger are proposed to be listed on both the NSE and BSE, subject to applicable regulations and necessary regulatory approvals.
The resulting company’s shares are proposed to be listed separately, subject to completion of the necessary regulatory and listing formalities.
Until listing, the newly allotted shares will appear under the unlisted section of your demat account and will become tradable after listing.
The average buy price of your existing HEG holdings will be updated after the company announces the applicable Cost of Acquisition (COA) following the demerger.
Corporate Restructuring Objectives
Business Separation: Separates the Distillery Division from K.M. Sugar Mills into a dedicated entity.
Focused Operations: Enables the Distillery business to operate under a separate corporate structure.
Independent Value Discovery: The proposed listing of KM Spirits and Allied Industries Ltd. on NSE and BSE may provide a separate platform for investors to assess the business.
Shareholder Participation: Existing eligible K.M. Sugar Mills shareholders will receive shares in the resulting company based on the prescribed entitlement ratio.