Gujarat Fluorochemicals Limited (now known as "GFL Limited" or "the Demerged Company" or "GFL1") has been a listed company that owned a Chemical Business Undertaking, and equity shareholding in certain other businesses including Inox Leisure Limited and Inox Wind Limited, amongst others. The Board of Directors of GFL1 had decided to demerge the chemical business from GFL1, into a separate company called Inox Fluorochemicals Limited (now known as "Gujarat Fluorochemicals Limited" or "the Resulting Company" or "GFL2").
The Hon'ble National Company Law Tribunal, Ahmedabad Bench, by its Order dated July 4, 2019, has approved the Scheme of Arrangement between GFL1 and GFL2, and their respective shareholders, underSections 230 to 232 of the Companies Act, 2013 and all other applicable provisions of the Companies Act, 2013 ("Scheme" or "the Scheme") for the demerger of Chemical Business Undertaking from GFL1 to GFL2.
The Appointed Date of the Scheme is 1st April 2019. Accordingly, with effect from the Appointed Date, the entire Chemical Business Undertaking of GFL1 has been transferred and vested into GFL2.
Further, as a consideration for demerger, GFL2 is to issue equity shares having face value of Re.1 each to the Shareholders of GFL1 based on the share entitlement ratio as under:
"1 (One) fully paid up equity share of face value of Re. 1 each fully paid up of Resulting Company shall be issued and allotted for every 1 (One) fully paid up equity share of Re. 1 each fully paid up held in Demerged Company."
The Board of Directors of GFL1 has made an announcement for fixing the Record Date as '7th August, 2019' for the purpose of identification of shareholders of GFL1 to whom the equity shares would be issued by GFL 2. Due to the demerger of the Chemical Business Undertaking from GFL1 to GFL2, the equity share price of GFL1 is adjusted today i.e. 6th August, 2019, to reflect this transfer. The equity share price of GFL1 therefore reflects the value of the assets held by GFL1, without the Chemical Business Undertaking.
The equity shares in GFL2 issued pursuant to the demerger shall be listed on the BSE Limited ('BSE') and National Stock Exchange of India Limited ('NSE') upon receipt of trading permission from BSE and NSE.
It is expected that the equity share price of GFL2, on listing, should reflect the value of the Chemical Business Undertaking.
Shares of GUJARAT FLUOROCHEMICALS LTD. was last trading in BSE at Rs.133 as compared to the previous close of Rs. 879.5. The total number of shares traded during the day was 1766 in over 71 trades.
The stock hit an intraday high of Rs. 140 and intraday low of 133. The net turnover during the day was Rs. 234962.