Wednesday, 24 February 2016

Pudumjee Group wraps up three-way demerger and merger of business into a new entity


23rd February, 2016:  Pudumjee Pulp & Paper Mills Ltd (PPPM), Pudumjee Industries Ltd (PIL) & Pudumjee Hygiene Products Ltd (PHPL) 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 (which were acquired from Global Boards Limited, a few years ago) and related liabilities into a new entity "Pudumjee Paper Products Limited (PPPL)" which willbe listed within the next few months.

Existing Shareholders of the companies have been allotted additional shares of Pudumjee Paper Products Limited as follows:

Pudumjee Pulp and Paper Mills Ltd: 37 shares of PPPL with the face value of Re. 1 each for every 20 shares with a face value of Rs. 2 each held by them.

Pudumjee Industries Ltd: 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.

Pudumjee Hygiene Products Ltd: 7 shares with a face value of Re. 1 each for every 20 shares with a face value of Rs. 10 each held by them.

The Shares of Pudumjee Pulp & Paper Mills Ltd as well as Pudumjee Industries Ltd are being traded ex-demerger since February 11, 2016 and those of PPPL will most likely start trading within next few months.

All employees of the existing 3 companies who are related to the Paper business have moved to the new entity.

Pudumjee Paper Products Ltd has now emerged as the single largest Specialty Paper Producer in the Country with an annual installed capacity of 60,000 Tons and with current turnover around Rs. 500 Crores. This exercise will bring about enormous rationalization and synergies in the business of the group.

The residual companies i.e. Pudumjee Pulp & Paper Mills Ltd and Pudumjee Industries Ltd. will now operate as real estate development companies with available land bank. Pudumjee Pulp & Paper Mills Ltd also has wind power generation business with 4600 KW installed capacity. Pudumjee Hygiene Products Ltd (100% subsidiary of Pudumjee Industries Ltd) will concentrate on Machinery Leasing business.

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