Plastic products maker Sintex Industries today said its board has approved demerger of custom moulding business and prefab business from its two arms Sintex BAPL and Sintex Infra Projects, respectively.
Both the companies are wholly-owned subsidiaries of Sintex Plastic Technologies, Sintex Industries informed BSE.
The board of the company, in a meeting held today "unanimously approved the composite scheme of arrangement for demerger, the Gujarat-based company further said.
"The scheme is expected to establish leadership and management focus on the core business," the company said adding that it would create focused leadership and management attention.
As per the scheme, Sintex Industries shareholders would get shares of Sintex Plastic Technology.
"The scheme also involves issuance of equity shares of Sintex Plastic Technology to the equity shareholders of Sintex Industries such that shareholders of Sintex Industries will effectively get one equity share of Sintex Plastic Technology upon demerger against one equity share held in Sintex Industries and listing of these equity shares of Sintex Plastic Technology," it added.
Sintex Industries is a flagship company of Sintex Group.
Shares of Sintex Industries today settled at Rs 72.95 on BSE, down 10.49 per cent from previous close.
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