EID Parry has, in a major restructuring move, decided to demerge its fertiliser and pesticide division, FIND (Farm Inputs Division), into its subsidiary company Coromandel Fertiliser Ltd (CFL).
EID Parry, which is part of the Rs 4,200 crore Murugappa Group, is also merging into itself two of its wholly subsidiary companies, Parry & Co Ltd and Mofussil Warehouse & Trading Company Ltd.
Under the restructuring scheme, CFL will issue to EID Parry shareholders one equity share of CFL for every three equity shares of EID held.
More From This Section
All the assets and liabilities related to FIND would also be transferred to CFL.
The move to demerge the fertiliser and pesticide division into CFL will leave EID Parry with a substantially reduced topline.
The FIND division contributed close Rs 735 crore to the topline of the Rs 1376 crore for the year ended March 31, 2003. CFL will benefit and see its topline zoom to close to Rs 945 crore through this move.
All the assets and liabilities of the two wholly owned subsidiaries which are being merged with EID Parry, would be transferred to the parent company at book value with effect from April 1, 2003.
A Vellayan, vice chairman, EID Parry Ltd, said,