Forbes and Company, the listed arm of Shapoorji Pallonji Group, on Monday announced the demerger of its precision tools and machine parts business.
As per the scheme of arrangements approved by the board of directors of the company, the new entity will be called the Forbes Precision Tools and Machine Parts Limited (FPTL), according to the regulatory filings. The new entity will be carved out of the existing company Forbes & Co.
“The scheme was reviewed and recommended to the board by the committee of independent directors and the audit committee of the company,” the filing said, subject to approval from the Securities and Exchange Board of India (Sebi), stock exchanges, shareholders and creditors of the company and the National Company Law Tribunal.
There is “no cash consideration” involved in the scheme of arrangement that will bring the demerger into effect, Shapoorji Pallonji listed entity, Forbes & Co, said.
The turnover of precision tools business for Forbes for the financial year ended 31 March, 2022 was ₹179.22 crores, accounting for 76.25 per cent of the total turnover of the company.
“Four fully paid up equity shares of ₹10 each of the resulting company (FPTL) shall be issued and allotted to the equity shareholders of the demerged company (Forbes & Co) for every one fully paid up equity share of ₹10 each held by them in the demerged company as on the record date” the filing noted.
Forbes and Company will not undergo any change in shareholding pattern as a consequence of the demerger.
Forbes & Co will remain directly engaged in the businesses of industrial automation, coding and medical devices; real estate; and investment into subsidiaries, joint ventures and associates.
