New Delhi, Dec 31 (UNI) Auto parts manufacturing firm LG Balakrishnan&Bros Ltd (LGBBL) today said it has approved the demerger of its forging division into a separate company.
''The Board has accepted the recommendations of the demerger whereby the company will be demerged into the Forging Division consisting of Hot Forging Division, Warm Forging Division and Cold Forging Division into a separate company, called LGB Forge Ltd with effect from April 1 next year,'' a company statement said.
The shareholders will get one share of the spun-off forging division for every share held in the company, it added.
The company's board, in October, had approved spinning off the forging unit into a separate firm to give it sharper focus to form joint ventures.
The restructuring will be subject to relevant approvals and confirmation of the demerger scheme by the High Court of Madras.