Mumbai: Terry towels and home furnishings maker Welspun India Ltd said it will demerge its distribution and marketing as well as its investment divisions into two separate firms.
The distribution and marketing company will hold all the international businesses as well as Welspun Retail, and will be known as Welspun Global Brands. The investment firm will be called Welspun Investments Ltd.
“Welspun India shareholders will get 10 shares in the marketing company and 5 shares in the investment firm for every 100 held,” it said.
“The restructuring will give more flexibility on business operations by increasing focus on specific tiers of the business,” Welspun India said.
Upon the demerger, set to be completed by April next year, both new firms will be listed separately on the NSE and BSE.
Shares of Welspun India were up 2.05% at Rs39.80 in a weak Mumbai market.