Rossell India Limited is undergoing a significant corporate restructuring through a demerger. Its aerospace and defense division, Rossell Techsys, is being separated into a new entity, Rossell Techsys Limited. This move involves the creation of two independent companies: Rossell India Limited (focused on tea production) and Rossell Techsys Limited (focused on aerospace and defense).
The restructuring aims to enhance the operational efficiency and focus of both divisions. By separating these two distinct business lines, each company can pursue its own growth strategies, attract relevant investors, and streamline operations. This allows Rossell India to focus on its core tea business, while Rossell Techsys can target expansion in the aerospace and defense sector. The move is also designed to unlock value for both businesses and optimize the company’s corporate structure.
Shareholders of Rossell India Limited will now hold shares in two distinct companies—Rossell India Limited (tea) and Rossell Techsys Limited (aerospace and defense). This gives shareholders more flexibility to manage their investments, as they can benefit from the growth prospects of both industries. Additionally, the demerger unlocks value, potentially increasing the overall valuation of both companies. Shareholders will receive new equity shares in Rossell Techsys Limited, increasing their overall holdings, and both companies could offer enhanced dividend opportunities as they pursue independent growth.
The record date for determining the eligible shareholders is 20 September 2024. This restructuring is a strategic move aimed at maximizing value for shareholders while streamlining the business to foster long-term growth in each sector.
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Hello sir thank for your valuable information I’m also a shareholder of rossell india so when will I get the rossell techsys limited share alloted to their russel India shareholder, can you please tell me the exact date of the allotment of techsys shares and the price of it.
@Arun_001 As of now the information is not yet released by the company. The company will keep its shareholders updated via registered email. Also, you can check the investor relation section of the company.
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Hello. I hold a good chunk of Rossell India shares and am really excited about the demerger. With my limited knowledge I believe that demergers can result in really good returns (if the company’s vision falls in place of course). My last demerger experience was super amazing. I held solid quantity of Mirza International and when it demerged into Red tape I was beyond thrilled. Right now red tape is trading at a level which gives me bumper profits. I shared this only to know your opinion about this current demerger of Rossell India. Do you believe in this company?
@akkiinvest Apologies for the delayed reply. I personally did not track this company but usually demergers are best for companies where-in one entity is loss making and the other is profit making.
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Precisely what happened to me after the Mirza- Red tape demerger. Red tape is rising high( my purchase price for red tape turned out to be really low) and Mirza is out of the picture (at least for me). Thanks anyway
share price is under lower circuit the one after demerger and don’t know when and at what rate it will stop . This seems that there is nothin left with Rossel Ind ??? Some one please share details on this
@Jayant_Dharod The pricing action might be to bring the equilibrium, its all about valuation and then comes the demand and supply!