MUMBAI: Deepak Fertilisers and Petrochemicals Corporation Ltd on Friday said it will demerge two of its core businesses — fertilisers and technical ammonium nitrate (TAN) — into a wholly owned subsidiary, Smartchem Technologies Ltd.
The company said, the National Company Law Tribunal (NCLT) has recently approved the restructuring scheme. Its other divisions namely industrial chemicals, home lifestyle and retail arm will continue to operate under the group company.
The restructuring aims at enhancing management focus, improving operational efficiency and providing impetus to growth to generate incremental stakeholder value.
The restructuring exercise did not involve any exchange or issue of additional shares and therefore, existing shareholders will continue to remain unaffected.
“Our shareholders while remaining unaffected would certainly be a beneficiary of enhanced focus on bringing higher accountability for improving performance across all business verticals with building case for higher investments in respective business vertical,” said Sailesh Mehta, CMD, DFPCL.