Latest News | GHCL's Secured Creditors Approve Scheme of Demerger of Inorganic Chemicals, Textile Biz

New Delhi, Jul 8 (PTI) Chemicals and textiles manufacturer GHCL on Thursday said its secured creditors have approved the scheme of demerger of the company's inorganic chemicals and textile businesses.

The company's shareholders and unsecured creditors had already approved the scheme of demerger in April this year. With this, the company will now approach the NCLT for its approval, GHCL said in a statement.

GHCL Managing Director R S Jalan said, "This is an important step towards the next phase of growth for the organisation as a whole. The demerger will go a long way in facilitating better opportunities, focus and business synergies for both businesses."

He further said, "It will also help us cater to the different needs of the diverse businesses in a better way and aid value creation for our stakeholders."

As part of a restructuring announced in March last year, GHCL's textile business will be demerged into a separate company. Both businesses will be listed on the bourses as separate business entities.

The company said it expects the demerger to deliver various operational and strategic benefits to each business segment such as focused growth, concentrated approach, business synergies and increased operational and customer focus.

"In addition, it will address independent business opportunities with efficient capital allocation and attract different set of investors, strategic partners, lenders and other stakeholders, thus expected to result in enhanced value creation for stakeholders," the statement said.

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