GHCL gets shareholders and creditors’ approvals for demerger plans

GHCL Limited, an Indian chemical and textile company, said that its secured creditors have approved the scheme of demerger of its inorganic chemicals and textile businesses.

The New Delhi based company said that its shareholders and unsecured creditors had already given their nod to the scheme of demerger in a meeting held in April 2021.

With the approvals from shareholders and creditors, GHCL plans to approach the National Company Law Tribunal (NCLT​) for its approval.

As per the restructuring announcement made in March 2020, GHCL will spin out its textile business into a separate company and both businesses will be listed as separate business entities.

GHCL gets shareholders and creditors’ approvals for demerger plans. Photo courtesy of Anita starzycka from Pixabay.

GHCL expects the demerger of its textile business to bring in various operational and strategic benefits to each business segment, which would include focused growth, business synergies, concentrated approach, and enhanced operational and customer focus.

Additionally, the demerger will address standalone business opportunities with efficient capital allocation and bring in different set of investors, lenders, strategic partners, and other stakeholders, thereby providing improved value creation for stakeholders.

RS Jalan – Managing Director of GHCL said: “This is an important step towards the next phase of growth for the organisation as a whole. The demerger will go a Jong way in facilitating better opportunities, focus and business synergies for both businesses. It will also help us cater to the different needs of the diverse businesses in a better way and aid in value creation for our stakeholders.”