Paradeep Phosphates Limited has successfully distributed the net proceeds from the sale of fractional shares to eligible shareholders of the former Mangalore Chemicals & Fertilizers Limited. This distribution follows the company’s recent merger process, ensuring that all fractional entitlements arising from the share exchange ratio were appropriately compensated. The process was finalized on May 8, 2026, fulfilling the company’s commitment to its stakeholders regarding the consolidation of fractional equity holdings.
Completion of Fractional Share Distribution
Following the merger and the subsequent allotment of equity shares, Paradeep Phosphates Limited has completed the process of selling and distributing proceeds for 23,217 fractional shares. These shares, which were held in trust by the ‘PPL Merger Trust,’ were liquidated in the open market to ensure that eligible shareholders received fair value for their entitlements.
Breakdown of Financial Settlement
The settlement process concluded on May 8, 2026. The financial details regarding the distribution are as follows:
- Gross Amount Realized: ₹26,01,427.96
- Tax Deducted at Source (TDS): ₹11,801.00
- Net Amount Distributed: ₹25,89,626.96
This distribution ensures that the company has effectively compensated all eligible equity holders in direct proportion to their fractional entitlements established during the merger exchange ratio of 187 shares of Paradeep Phosphates for every 100 shares held in the transferor company.
Commitment to Shareholder Interests
The Audit Committee and the Independent Directors have reviewed and certified that the proceeds were distributed in full compliance with the approved scheme of arrangement. By successfully settling these fractional holdings, the company has finalized another key administrative step in its post-merger integration, providing clarity and financial closure to the affected shareholders.
Source: BSE
