GMR Inds to spin off ferro alloys unit

The board of directors of GMR Industries, which met on August 12, 2006, has decided to de-merge the ferro alloys division to a separate company - GMR Ferro Alloys & Industries.

According to a release issued by GMR Industries to the BSE today, the board has approved the valuation report submitted by M/s. Deloitte Haskins and Sells.

"As per the scheme of arrangement, every equity shareholder holding 100 equity shares in GMR Industries would be getting 38 equity shares in GMR Ferro Alloys & Industries and 62 new equity shares from the company in cancellation of their existing 100 equity shares in the company. Further, every preference shareholder holding 100 preference shares in the company would be getting 38 preference shares in GMR Ferro Alloys & Industries Ltd and 62 new preference shares from the company in cancellation of their existing 100 preference shares in the company. All the assets and liabilities pertaining to the ferro division would be transferred to the new company at book values," the release added.

The appointed date of demerger is April 1, 2006, the release said.

The board also approved a proposal to merge Bharat Sugar Mills with the company. "BSML is currently a subsidiary of the company, and is implementing a project for construction of an integrated sugar complex with 3,500 tonne crushed per day (TCD) expandable to 5000 TCD, co-generation power plant with 24 MW and 45 KLD of distillery plant at a cost of Rs 274 crore. The appointed date of merger is April 1, 2006," the release added.