The Telegraph
Since 1st March, 1999
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Nirma outlines demerger course

Mumbai, March 19: Nirma Ltd, the consumer goods major promoted by Karsanbhai K. Patel, today indicated that its board is considering the demerger of soap-stone manufacturing activities and the brands division from Nirma Industries to Nirma Ltd. The meeting is slated for March 21.

The board of directors would discuss transferring the company’s mega-brands division comprising Nirma, Nima and others of Nirma Industries to Nirma.

Nirma officials, however, could not be reached for comments.

The company’s share price hardly moved on the Bombay Stock Exchange today. The scrip opened at Rs 234.90, up from its previous close of Rs 230 and ended at Rs 229.25.

For analysts tracking the company, one of the main reasons for the poor discounting of the company is that the premier brands do not belong to the listed firm. The brands are under Nirma Industries, which is controlled by the promoters.

“If the board finally decides to go ahead with the scheme of arrangement it would mean that the shareholders of Nirma Ltd will gain in the long term. The price fixed for acquiring the brands will be a major factor in the shorter term,” said industry watchers.

Nirma has informed the Bombay Stock Exchange about the slated board meeting.

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