K.M. Sugar Mills Ltd. Receives NCLT Order Regarding Demerger Scheme
K.M. Sugar Mills Limited (KMSM) received an order from the Hon'ble National Company Law Tribunal (NCLT), Allahabad Bench, on March 24, 2026, regarding the proposed Scheme of Arrangement for Demerger between KMSM and KM Spirits and Allied Industries Limited (KMSAIL). The order, received on March 27, 2026, allows the First Motion Application filed in respect of the aforementioned Scheme.The NCLT’s order directs the convening of meetings of the Equity Shareholders and Unsecured Creditors of K.M. Sugar Mills Limited and dispenses with the requirement of convening the meeting of the Secured Creditors.
The full order is available on the Hon'ble NCLT website (www.nclt.gov.in) and the Company’s website (www.kmsugar.com/scheme-of-arrangement-for-demerger).
The proposed Scheme involves the demerger of the ‘Distillery Division’ of K.M. Sugar Mills Limited into KM Spirits and Allied Industries Limited. This demerger is expected to provide several benefits, including enabling a sharper focus and enhanced operational efficiency for the Distillery Division and unlocking shareholder value through an independent, market-driven valuation.
The BSE Limited and National Stock Exchange of India Limited had previously issued no-objection observations to the proposed Scheme on January 12, 2026, and January 13, 2026, respectively.
Dates for the Equity Shareholders and Unsecured Creditors meetings, along with copies of the notices, will be submitted to the stock exchanges in due course.
Table: Share Entitlement Ratio
| Equity Shares in K.M. Sugar Mills Limited | Equity Shares in KM Spirits and Allied Industries Limited |
|---|---|
| 5 | 1 |
Source:
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