NCLT Sanctions De-merger Scheme for India Glycols; BioPharma and Spirits Undertakings Transfer to New Companies

NCLT Sanctions De-merger Scheme for India Glycols; BioPharma and Spirits Undertakings Transfer to New Companies​

The National Company Law Tribunal (NCLT), Allahabad Bench at Prayagraj, has sanctioned a major Scheme of Arrangement involving India Glycols Limited (IGL). The scheme involves the de-merger of specific business units from IGL into two new entities: Ennature Bio Pharma Limited (EBL) and IGL Spirits Limited (ISL).

The sanctioning order, pronounced on July 17, 2026, finalizes the division of undertakings. Upon the scheme becoming effective, the Biopharma Undertaking will be transferred to EBL, while the Spirits and Biofuel Undertaking will vest in ISL. The remaining business units and assets will continue under India Glycols Limited.

The Scheme's Appointed Date was set as April 1, 2026.

Stakeholder Approval Confirmed for De-merger​

A significant aspect of the scheme is the confirmation that the proposed de-merger received approval from the relevant stakeholders of the original company. The Chairperson’s Report regarding the meeting of Equity Shareholders and Unsecured Creditors of India Glycols Limited reported the following voting results:


For the Unsecured Creditors of the Demerged Company:

Transfer Details and Share Allotment​

The Tribunal order specifies the terms of transfer for each undertaking:

BioPharma Undertaking to Ennature Bio Pharma Limited:

• The Biopharma Undertaking will stand transferred to EBL as a going concern.
• IGL shareholders will be allotted 1 equity share of face value Rs. 5/- in EBL for every 3 equity shares of face value Rs. 5/- held in IGL, as registered on the Record Date.
• The existing shares held by IGL in EBL will be cancelled upon effectiveness.

Spirits and Biofuel Undertaking to IGL Spirits Limited:

• The Spirits and Biofuel Undertaking will stand transferred to ISL as a going concern.
• IGL shareholders will be allotted 1 equity share of face value Rs. 5/- in ISL for every 1 equity share of face value Rs. 5/- held in IGL, as registered on the Record Date.
• The existing shares held by IGL in ISL will be cancelled upon effectiveness.

Corporate and Regulatory Status​

The scheme was confirmed following reviews from statutory authorities, including the Income Tax Department (ITD) and both National Stock Exchange of India Limited (NSE) and BSE Limited (BSE). The petitioner companies provided undertakings assuring that they would continue to discharge all liabilities related to the respective Demerged Undertakings in accordance with the Scheme.

The document notes that no corporate debt restructuring or reduction in the paid-up equity share capital of the Demerged Company was part of the arrangement.

The Tribunal order confirms that upon the scheme becoming effective, all employees of India Glycols Limited engaged in or related to the undertaking will be deemed transferred to and engaged by the respective Resulting Company without interruption of service, based on continuity of service, at terms no less favourable than those previously provided.

INDIAGLYCO Stock Price Movement​

India Glycols Limited shares today slipped by 1.49% as they closed at ₹1,143.20 after trading post-market. The equity saw a traded volume of 224,297 shares during the session.