The board of directors of Orient Paper and Industries Limited (OPIL) at its meeting held on Wednesday, approved a proposal to demerge the cement business into Orient Cement Limited.
OPIL shareholders will get one new equity share of Orient Cement for each share held in OPIL in addition to their existing OPIL shares. On demerger taking effect, Orient Cement is proposed to be listed on the BSE and the NSE. The board of directors of Orient Cement at its meeting held on Wednesday also approved the demerger proposal.
C. K. Birla, Chairman, OPIL, said “The company has ambitious plans for its cement business and the demerger will provide an opportunity to shareholders to directly participate in the pure-play cement company. The restructuring is expected to unlock value for shareholders”.
M. L. Pachisia, Managing Director, said “Creation of a pure-play cement company will allow Orient Cement to focus on the cement business and achieve faster growth. At the same time, OPIL management will be able to provide greater focus on growing paper and electricals businesses”. The proposed scheme will be subject to requisite approvals.
