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Jubilant shareholders okay biz restructuring plan

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Press Trust of India New Delhi
Last Updated : Jan 20 2013 | 1:18 AM IST

Drug maker Jubilant Organosys today said its has got the approval of its shareholders for restructuring plans.

Under the proposal, the company's agri and polymer business have been hived off into a separate company while its wholly-owned subsidiary Speciality Molecules (SML) and Pace Marketing Specialties (PMSL) will be merged with it.

Shareholders, creditors have approved the scheme of amalgamation and demerger among Jubilant Organosys, Speciality Molecules, Pace marketing Specialities and Jubilant Industries, Jubilant Organosys said in a filing to the Bombay Stock Exchange (BSE).

Earlier in July, the company's board had approved the business restructuring. The demerged entity will be named Jubilant Industries and would be separately listed on the stock exchanges by January 2011, the company had said.

The newly formed entity, Jubilant Industries would focus mainly in the field of polymers and fertiliser, while Jubilant Life Sciences would continue to focus on pharmaceutical segment, the company had said earlier.

Under the scheme of demerger arrangement, one additional share of Rs 10 each of Jubilant Industries will be issued for every 20 shares held in Jubilant Organosys of Re 1 each.

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On the merger of SML and PMSL with Jubilant Organosys, the company had said that shares held by Jubilant Organosys in SML will be cancelled and no fresh shares shall be issued by Jubilant Organosys.

Shares of Jubilant Organosys today closed at Rs 339.10 on the BSE, down 0.07 per cent from its previous close.

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First Published: Sep 27 2010 | 10:44 PM IST

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