Hyderabad-based Surana Telecom & Power (Surana Telecom) has decided to demerge its solar business into Surana Ventures in order to consolidate company's solar business. The transaction will be effective from 1 October, 2009.
As a part of the arrangement, the existing shareholders of Surana Telecom will be issued 3 new equity shares of Rs 10 each of Surana Ventures for every 4 shares of Rs 5 each held in Surana Telcom. This will be in addition to their existing shareholding of the company.
As per the demerger process, Surana Telecom will transfer its solar business to Surana Ventures. Upon effectiveness of the scheme of arrangement, the existing public shareholders of Surana Telecom will hold 25.75 per cent of shareholding in Surana Ventures and thereby Surana Telecom will directly hold 17.92 per cent in Surana Ventures.
The proposed scheme of arrangement is subject to the approval of the Andhra Pradesh High Court.
On completion of the demerger, Surana Ventures will be listed on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).
On BSE, the company's shares were trading at Rs 41.70, up 4.25 per cent at 1228 IST.
