Six years after being referred to the Board for Industrial and Financial Reconstruction (BIFR), G P Goenka-controlled Duncans Industries Ltd, is looking to turn the corner.
The demerger of the fertilizer division, in keeping with the BIFR scheme, has helped bring down the negative networth from Rs 1,098 crore to Rs 14 crore. The scheme also contemplates restructuring of its share capital, and infusion of equity funds from the promoters.
With the demerger of the fertilizer division, DIL has emerged has tea plantations company with a production of 15 million kg. “We will increase the production substantially going forward,” DIL officials said.
The Duncans stock on Monday closed at Rs 9.85, up by 2.07 per cent, on the National Stock Exchange.
“In accordance with the sanctioned scheme, the fertilizer disvision was demerged to Kanpur Fertilisers & Cement Ltd, an equal joint venture with the Jaypee Group and the dues of the secured lenders have been paid,” the company statement read.
The 55,000 fixed deposit holders of the company have also been paid their dues, as per the BIFR rehabilitation scheme.