Shares of Refex Industries surged 17.3% in Tuesday’s trade after the company announced that its Board of Directors had approved a composite scheme of amalgamation and arrangement aimed at unlocking the potential of its Green Mobility business.
In a media release dated September 22, the company informed exchanges that the proposed scheme involves the merger of Refex Green Mobility Limited (RGML), a wholly owned subsidiary, into Refex Industries Limited (Refex Industries).
Following this merger, the Green Mobility Business will be demerged into a newly incorporated entity named Refex Mobility Limited (RML).
As per the proposed arrangement, RML is planned to be independently listed on both BSE and NSE, creating two focused business platforms.
While Refex Industries will continue to operate its core business areas like Ash & Coal handling, the newly formed RML will focus on sustainable mobility solutions that utilize clean-fuel vehicles.
The company noted that shareholders of Refex Industries will be issued equity shares in RML in a 1:1 ratio, reflecting their existing shareholding in Refex Industries as on the record date. This will establish a mirror shareholding structure between the parent and the demerged entity.
The implementation of this scheme is subject to regulatory approvals from SEBI, NCLT, shareholders, creditors, and relevant stock exchanges.
“The Board’s approval of this restructuring marks a milestone in Refex’s growth journey. By creating a dedicated listed platform for our Green Mobility Business, we will sharpen focus, unlock value for shareholders across both Refex Industries & RML, and reaffirm our commitment to clean, technology-driven urban corporate transport,” said Anil Jain, Chairman and Managing Director of Refex Industries.
Founded in 2002 and headquartered in Chennai, Refex Industries has built a diversified portfolio across Ash & Coal Handling, Green Mobility initiatives, and Wind Energy Solutions. With the announcement, the company reiterated its focus on solutions geared towards environmental sustainability.
Source: Economic Times