JK Agri Genetics to revamp seeds business

JK Agri Genetics Ltd has embarked upon a business restructuring plan under which its seeds business will be hived off to a new entity.

"This restructuring shall enable the company to focus on the seeds business which has huge potential for growth in the years ahead. The residual company shall comprise primarily of investments whose present market value has also grown significantly in the past two years," said Vikrampati Singhania, Director, JK Agri Genetics.

As per the plans, the current shareholders of JKAGL will receive 128 fully paid up equity shares of Rs 10 each for every 100 equity shares held in JKAGL on the record date.

Preference shares issued earlier by JKAGL aggregating Rs 4,250 lakh are also being converted into equity shares of the new undertaking converted at Rs 128.33 per share of Rs 10 each.

Out of total debentures of Rs 4,250 lakh, debentures of the value of Rs 977.50 lakh are also proposed to be converted in the equity on the same price of Rs 128.33 per share of Rs 10 each.

"The restructuring is a win-win situation for the shareholders of JKAGL who will receive 128 additional shares of the seeds' entity as well as continue with their present holding of 100 shares in the existing company. Through the revamp, we are creating strong and focused entities wherein the seeds entity will focus on the seeds business while JKAGL shall focus on the investments business," Singhania added.