The National Company Law Tribunal (NCLT) has approved the scheme of arrangement for India Glycols Limited, paving the way for the demerger of its Bio Pharma and Spirits & Biofuel undertakings. This order, dated January 15, 2026, allows India Glycols to proceed with separate meetings for equity shareholders and unsecured creditors, marking a significant step in its restructuring process.
NCLT Greenlights Demerger
India Glycols Limited has received approval from the National Company Law Tribunal (NCLT) for its scheme of arrangement involving the demerger of its ‘Bio Pharma Undertaking’ and ‘Spirits and Biofuel Undertaking’. This decision, outlined in an order dated January 15, 2026, facilitates the company’s strategic realignment.
Key Directives from the Order
The NCLT order includes the following key directives:
- Separate meetings for Equity Shareholders and Unsecured Creditors of India Glycols will be convened via video conferencing. The equity shareholder meeting is scheduled for March 9, 2026.
- The requirement for meetings of Secured Creditors of the Demerged Company and Equity Shareholders of Resulting Company 1 & Resulting Company 2 has been dispensed with, given consent affidavits received.
- The Demerged Company has been directed to issue notices to Secured Creditors specifying the individual value of debts owed, and reflect any objections or affidavits received in the Second Motion Petition.
- Notices will be issued through email or speed post/courier to Equity Shareholders and Unsecured Creditors of the Demerged Company.
Scheme Details
The appointed date for the scheme is April 1, 2026. The restructuring aims to allow greater focus on individual businesses and improve operational efficiency. The Resulting Company 1 will issue 1 Equity Share of ₹5 each for every 3 Equity Shares of ₹5 each held in the Demerged Company. The Resulting Company 2 will also issue 1 Equity Share of ₹5 each for every 1 Equity Share of ₹5 each held in the Demerged Company.
Source: BSE
