All employees of the existing three companies, who are related to the paper business, have moved to the new entity
February 24, 2016
Pudumjee Industries on Wednesday said it has completed the demerger of paper related business and manufacturing assets of its three companies—Pudumjee Pulp and Paper Mills, Pudumjee Industries, and Pudumjee Hygiene Products—and forming of a new entity, Pudumjee Paper Products (PPPL).
All the three companies have completed the demerger of their respective paper related business and manufacturing assets, including plant and machinery as well as about 80 acres of land at Mahad in Maharashtra, which were acquired from Global Boards a few years ago, the company said in a statement.
They are forming a new entity—PPPL, which will be listed within the next few months, it added. Existing shareholders of the companies have been allotted additional shares of Pudumjee Paper Products.
Shareholders of PPPM are alloted 37 shares of PPPL with the face value of Re1 each for every 20 shares with a face value of Rs.2 each held by them. Similarly, shareholders of PIL have been alloted 9 shares of PPPL with the face value of Re1 each for every 20 shares with a face value of Rs.2 each held by them.
In PHPL, shareholders have been alloted seven shares with a face value of Re1 each for every 20 shares with a face value of Rs.10 each held by them. The shares of PPPM as well as Pudumjee Industries are being traded ex-demerger since 11 February 2016 and those of PPPL will most likely start trading within next few months.
Meanwhile, all employees of the existing three companies, who are related to the paper business, have moved to the new entity. Pudumjee Paper Products has now emerged as the single largest specialty paper producer in the country with an annual installed capacity of 60,000 tonnes and with current turnover around Rs.500 crore.
The residual companies—PPPM and PIL—will now operate as real estate development companies with available land bank. PPPM also has wind power generation business with 4,600 kilowatt installed capacity. PHPL, a 100 percent subsidiary of Pudumjee Industries, will concentrate on machinery leasing business, it added.