Shares of Rossell India Ltd skyrocketed 10% on 2 September after the company announced the effective demerger of its aerospace and defence businesses.

This comes after the company and Rossell Techsys Ltd filed documents with the Registrar of Companies, which put their Scheme of Amalgamation into effect.

In April, the Scheme of arrangement between Rossell India (RIL) and Rossell Techsys (RTL) was accepted by the Kolkata bench of the National Company Law Tribunal (NCLT).

The effective date of their Scheme of Amalgamation was 30 August 2024, when both businesses submitted a certified copy of the NCLT’s approval order to the West Bengal Registrar of Businesses. Consequently, the plan went into effect on 30 August.

In addition to operating the aerospace and defence industry, which has its engineering and manufacturing centre in Bengaluru under the name Rossell Techsys Division, RTL is also involved in the production, marketing, and cultivation of tea under the Rossell Tea Division.

Rossell Techsys Division was moved to Rossell Techsys and split off from Rossell India as part of the plan.

Furthermore, Rossell India will cancel the paid-up share capital it now possesses in Rossell Techsys Limited after its investors get equity shares. Consequently, on the designated date, Rossell Techsys will no longer be a wholly-owned subsidiary of Rossell India.

Rossell Techsys Limited will also be the owner of Rossell Techsys Inc. USA, which was established to support the growth of the Rossell Techsys Division. On the designated day, Rossell Techsys Inc. USA’s wholly-owned subsidiary in India will be transferred to Rossell India.

In an official filing, the company stated that by adhering to the relevant SEBI laws and the Scheme, these measures guarantee the correct demerger and restructuring process.

At 1:45 pm, the shares of Rossell India were trading 4.90% higher at Rs 595 on NSE. 

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