Star Ferro and Cement today said the Meghalaya High Court has approved its demerger plans.
The High Court of Meghalaya has approved the Scheme of Arrangement for demerger between Star Ferro and Cement Ltd (SFCL), Shyam Century Ferrous Limited and their respective shareholders with effect from April 1, 2014, the company said in a filing to BSE.
In August last year, the company's board approved a demerger scheme under which a new company- Shyam Century Ferrous Limited- was formed to separate the company's ferro alloy division as part of an overall business reorganisation plan.
The ferro alloys division of SFCL constitutes the business and interests in manufacturing of ferro alloys and captive power plants.
It comprises ferro alloys and power plant at Byrnihat in Meghalaya.
The company had said, "In order to take the respective businesses to the next level of growth it is necessary to segregate and realign the businesses and interests of SFCL appropriately."
It added the new company will be a wholly-owned subsidiary of SFCL with SFCL and its nominees holding all the 5,00,000 equity shares of Rs l each issued by Shyam Century Ferrous.
"The remaining business and interests of SFCL, including manufacture of cement will continue to belong to and be managed by SFCL," the company had said.
Shares of Star Ferro and Cement Ltd today closed at Rs 166.90 on the BSE, up by 0.42 per cent.
