Prima Plastics and Prima Innovation Complete Demerger of Roto Business
Prima Plastics Ltd. has finalized the demerger of its Rotational Moulding Business (Roto Business) to Prima Innovation Limited (PIL) through a Scheme of Arrangement. The transition, sanctioned by the National Company Law Tribunal, facilitates the transfer of this division to PIL on a going concern basis.The Scheme of Arrangement between Prima Plastics Ltd. and Prima Innovation Limited provides for the demerger of the Roto Business from Prima Plastics to PIL. As per the scheme, PIL is required to issue equity shares to the shareholders of Prima Plastics in consideration for this demerger.
The National Company Law Tribunal, Ahmedabad Bench, sanctioned the Scheme of Arrangement via an Order dated March 16, 2026. The transaction had an Appointed Date of July 1, 2024, and reached its Effective Date on March 31, 2026.
Shareholding and Allotment Details
Under the provisions of the Scheme, PIL allotted 1,10,00,470 equity shares to the shareholders of Prima Plastics Ltd. The allotment was made in the ratio of 1 fully paid-up equity share of PIL, having a face value of INR 5, for every 1 fully paid-up equity share of Prima Plastics Ltd., which had a face value of INR 10.The allocation was extended to shareholders whose names appeared in the Register of Members or in the Register of Beneficial Owners maintained by the Depositories as of the Record Date, which was April 17, 2026.
Apportionment of Acquisition Cost
For shareholders determining the post-demerger cost of acquisition of equity shares in both Prima Plastics Ltd. and Prima Innovation Limited, the total cost of acquisition may be apportioned as follows:| Entity Name | Percentage of Total Cost of Acquisition of Shares of Prima Plastics Ltd. |
|---|---|
| Prima Plastics Limited | 59.00% |
| Prima Innovation Limited | 41.00% |
The allotment of equity shares by PIL resulting from the Scheme is stated not to be regarded as a transfer under tax law.
Stock Price Movement
As of 12:05, shares of Prima Plastics Ltd are dipping, currently trading at ₹111.80, reflecting a -1.32% change for the day. The stock has shown considerable intraday volatility, moving throughout the session between a low of ₹107.63 and a high of ₹115.00.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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