The board of directors of JK Industries, which met today, approved a proposal to hive off investments of the company to a new company.According to a release issued by JK Industries to the BSE today, Ernst & Young (E&Y) and Amarchand Mangaldas & Suresh A Shroff & Co (AMSS) appointed as advisors and legal advisors, respectively, have advised that the investments of the company be demerged into a separate undertaking. "This shall provide the residual tyre business an opportunity for more focused approach and enable value maximisation for all the stakeholders," the release added.The existing equity capital of Rs 37.46 crore (comprising 3,74,59,346 equity shares of Rs 10 each) of the company would be split into Rs 28.09 crore for the residual company and Rs 9.36 crore for the new company."Equity shareholders holding 100 equity shares of the company will get 75 fully paid up equity shares of Rs 10 each of the company (residual) and 25 fully paid-up equity shares of Rs 10 each of new company," the release added.The appointed date for the scheme shall be October 1, 2005, the release said.