Mumbai: Drugmaker Jubilant Organosys said on Thursday its board has approved demerging its agri and performance polymer business into a new unit.
Jubilant shareholders will get one share in the demerged entity for every 20 held, it said in a statement.
Post-demerger, Jubilant Organosys would be renamed as Jubilant Life Sciences Ltd while the demerged entity would be called Jubilant Industries Ltd, it added.
“Post-demerger, the newly formed entity would build expertise and grow in the field of polymers and fertiliser,” Shyam Bhartia, chairman and managing director, Jubilant Organosys, told television channel CNBC-TV18.
“...While Jubilant Life Sciences would become a firm focused on life sciences segment.”
The company also announced the amalgamation of its unit Speciality Molecules Ltd and Pace Marketing Specialities Ltd, a contract manufacturer of adhesives, with itself.
The new entity would carry along a debt of about Rs700-800 million from its parent, Bhartia added.
At 3:13 p.m., shares of Jubilant Organosys were trading at Rs378, down 1.94% in a Mumbai market that was up 1.06%.