New Delhi, Apr 1 (IANS): GHCL Limited, India's leading Chemical & Textile Company, announced effective date of demerger of its spinning business as April 1, 2023, which will henceforth be referred to as GHCL Textiles Limited.

This marks completion of demerger of textiles business of GHCL Ltd. Record date to determine eligibility of shareholders of GHCL Limited to receive shares of GHCL Textiles Limited set at April 8, 2023.

Upon this demerger, GHCL Textiles Limited set to list on National Stock Exchange and Bombay Stock Exchange post regulatory approval

Commenting on the announcement, RS Jalan, Managing Director, GHCL Limited said: "Over the past few years, GHCL Limited has delivered a significant operational performance, consistently generated healthy cash flows, and strengthened its balance-sheet. At the same time, we have meticulously enhanced our footprint through various value-creating capacity and capability augmentations. Having distinct operating entities shall allow both businesses to prioritize relevant focus areas and respond to market opportunities in a nimbler manner. This demerger is envisaged to create strong independent businesses uniquely positioned to enhance stakeholders' value over time."

GHCL shareholders to get shares of GHCL Textiles in the ratio of 1:1, one share of Rs 2 each for every share held in GHCL of Rs 10 face value.

GHCL Textiles assumes all the assets and liabilities of the spinning business. To be listed on both NSE & BSE post regulatory approvals.