Triveni Engineering and Industries today announced the demerger of its steam turbine business from the company, for unlocking shareholder value and tapping further growth opportunities.
The board of Triveni Engineering, which is engaged in manufacture of sugar and mechanical equipment, has approved the demerger of its wholly-owned subsidiary Triveni Turbine (TTL), from October 1, 2010.
After completion of the demerger, shares of TTL would be listed on the Bombay Stock Exchange (BSE) and National Stock Exchange, the company said in a statement.
The demerger is being carried out to provide TTL more opportunities for strategic partnerships. The move would also help TTL in deriving greater flexibility in fund raising capability for future growth, it added.
"The demerger would result in issuance of equity shares to the shareholders of Triveni by TTL, thereby resulting in unlocking and maximising shareholders value," the company said in a statement.
Under the demerger scheme, TTL would issue one equity shares of Re 1 to the shareholders of Triveni Engineering, for every one equity share of Re 1 each held by them in the capital of Triveni.
Consequently, Triveni's stake in TTL would be reduced to that extent, it said.
Shares of Triveni Engineering today closed down 0.41 per cent at Rs 122.40 on the BSE.
