Welspun Group de-merges its divisions

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Mumbai, Sep 16: USD Three billion Welspun Group on Tuesday, Sep 16 announced de-merger of its Distribution and Marketing and Investment Divisions into two separate companies at cost basis. This would allow strategic focus on specific tiers of the businesses and enable better business control, flexibility on business operations and leveraging International focus of the Group, the Company said in a release. The Company which has two manufacturing units in Gujarat said the Distribution&Marketing Company, which will hold all the international businesses, and Welspun Retail Limited (WRL) will be known as Welspun Global Brands Ltd (WGBL) whereas the Investment Company will be known as Welspun Investments Ltd (WINV).

As a part of this de-merger, WGBL will issue fresh shares to Promoters and shareholders of WIL in lieu of Promoters' and WIL's shareholding in WRL (which is valued at cost basis) and thus WGBL will hold entire equity of WRL.

The current shareholders of WIL will be allotted new shares in WGBL and WINV. Shareholders of every 100 shares in WIL will be given 10 shares of WGBL and five shares of WINV.

Post Demerger, Promoter and Non-Promoter shareholding in WGBL shall be 57.6 per cent and 42.4 per cent respectively.

Upon de-merger, both WGBL and WINV will automatically be listed separately on Indian stock exchanges, that is NSE and BSE.

The arrangement is subject to necessary statutory and regulatory approvals. The effective date for this de-merger is proposed to be April 1, 2009.

UNI

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