Home / Markets / Stock Markets /  Multibagger chemical stock: Aarti Industries fixes record date for demerger

Aarti Industries demerger update: Shares of Aarti Industries Ltd are one of the multibagger stocks that Indian stock market has delivered in recent years. The chemical company has announced record date for demerger into two companies — Aarti Industries and Aarti Pharmalabs Limited. The board of directors of the company has fixed 20th October 2022 as record date for demerger of these two company stocks. The chemical company board fixed this record date after approval from the National Company Law Tribunal bench, Ahmedabad. The NCLT has approved the demerger of Aarti Industries directing to pay one share of Aarti Pharma to every four shares of Aarti Industries held by the shareholders.

Informing stock market exchanges about the demerger record date, Aarti Industries said, "Record Date: Thursday, October 20,2022 — To determine the members of 'Aarti Industries Limited' (as per the scheme Demerged Company), to whom Equity Shares of 'Aarti Pharmalabs Limited' (as per the scheme Resulting Company) to be allotted pursuant to part 'B' under Paragraph 13.1 of the Scheme."

Giving its nod to Aarti Industries demerger, the NCLT said, "Upon the coming into effect of the Scheme, and as proposed in the Scheme, the Resulting Company shall, without any further act or deed and without any further payment, issue and allot on a proportionate basis to each member of demerging company, whose name is recorded in the register of members of demerging company as holding shares on the record date in following ratio: 1 (One) equity share of 5 each, fully paid up of resulting resulting company for every 4 (Four) equity shares of 5 each fully paid up held in demerging company."

Giving its approval to Aarti Industries demerger scheme, NCLT said, 'Considering the approval accorded by members and creditors of the petitioner companies to the proposed scheme , and the no objection given by the NSE vide letter dated 09.11.2021 and comment of "no adverse observation" given by BSE vide letter dated 09.11.2021, it appears that the requirements of the provisions of Section 230 and 232 are satishfied by the petitioner companies. It seems that the proposed scheme is bonafide and in the interest of shareholders and creditors. Therefore, petition is allowed."

 

Aarti Industries shares are one of the multibagger stocks on Dalal Street. In post-Covid rebound, this chemical stock has doubled shareholders' money in last two years whereas in last five years, it has delivered whopping 275 per cent return to its shareholders.

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Asit Manohar

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