Simbhaoli Sugars today said it would convene a meeting of the company's shareholders and creditors on June 27 to approve the transfer of its potable alcohol business into a wholly-owned subsidiary -- Simbhaoli Spirits.
In a filing to the Bombay Stock Exchange (BSE), the company said Allahabad High Court has directed to convene the meetings of equity shareholders and the secured creditors of the company on June 27 for considering and approving the Scheme of Arrangement of Simbhaoli Sugars (the transferor company) with Simbhaoli Spirits (the transferee company).
Early last month, Simbhaoli Sugars announced transfer of its potable alcohol business into Simbhaoli Spirits for a consideration of Rs 136 crore, as part of its restructuring exercise.
In March, the company had decided to hive off its potable alcohol and power businesses into separate entities to focus on by-product businesses and reduce the cyclical impact of the sugar business.
Simbhaoli Sugars has three plants in Uttar Pradesh, with sugarcane crushing capacity of 20,100 tonne per day.
The company had reported a net profit of Rs 1.3 crore for the quarter ended March 31 this year as compared to a loss of Rs 17.1 crore in the year-ago period.
