DCM Shriram Industries gains 4% as BSE clears merger proposal
Source: Business Standard
Illustration: Binay Sinha
DCM Shriram share price today: Shares of DCM Shriram Industries climbed 3.8 per cent to Rs 200 per share on the BSE on Wednesday. The gain in DCM Shriram Industries share price came after the BSE issued “no adverse” observations against the companies proposed merger plan.
At 11:00AM, DCM Shriram Industries share price was trading 3.66 per cent higher at Rs 199.55 as against the Sensex’s 0.21-per cent rise.
On Tuesday, the company informed via stock exchange filings that the BSE has issued a letter saying “we have no adverse observations with limited reference to those matters having a bearing on listing/de-listing/continuous listing requirements within the provisions of Listing Agreement, so as to enable the company to file the scheme with NCLT”.
“However, the companies shall fulfil the Exchange’s criteria for listing the securities of such companies and also comply with other applicable statutory requirements,” said the BSE letter.
In August 2023, DCM Shriram Group approved a scheme of arrangement involving amalgamation of Lily Commercial Pvt. Ltd. (Transferor Company) with DCM Shriram Industries Ltd. (Transferee Company) and subsequent demerger of demerged undertakings of DCMSR into two separate companies, namely, DCM Shriram Fine Chemicals Limited (Resultant Company 1) and DCM Shriram International Limited (Resultant Company 2).
According to the BSE, DCM Shriram Industries shall disclose all details of ongoing adjudication and recovery proceedings, prosecution initiated, and all other enforcement action taken, if any, against the company, its promoters and directors, before the NCLT and shareholders, while seeking approval of the scheme.
The company shall ensure compliance with Sebi circulars issued from time to time. Further, the companies involved in the Scheme shall duly comply with various provisions of the Sebi master Circular and ensure that all the liabilities of Transferor Company are transferred to the Transferee Company.
“The Company is advised that the information pertaining to all the unlisted companies involved, if any, in the scheme shall be included in the format specified for abridged prospectus in the explanatory statement or notice or proposal accompanying resolution to be passed, which is sent to the shareholders for seeking approval, if applicable. The Company shall also ensure that the financials in the scheme including financials considered for valuation report are not for a period more than 6 months old, if applicable,” it said in its observation.
On the financial front, DCM Shriram Industries posted a consolidated net profit of Rs 31.36 crore at the end of the June quarter of FY25, up from Rs 27.08 crore posted last year. Its total income from operations rose to Rs 560.46 crore from Rs 527.80 crore year-on-year.
First Published: Sep 18 2024 | 11:21 AM IST
