DCM Shriram Industries shares in focus as demerger record date takes effect

Shares of DCM Shriram Industries are expected to be in focus on Friday as stock has started trading on an ex-demerger basis on the record date, December 26, for its approved demerger scheme, which comes into effect.

DCM Shriram Industries had earlier announced December 19 as the record date, later revising it to December 26.

Under the updated timeline and in line with the T+1 settlement cycle, Tuesday, December 23 was the last day for investors to purchase shares of DCM Shriram Industries to remain eligible for the benefits arising from the demerger.


Since December 25 was a market holiday on account of Christmas, the stock began trading ex-demerger on December 24, meaning shares bought on or after this date are not entitled to receive shares in the resulting entities.

The demerger has received approval from the National Company Law Tribunal (NCLT), New Delhi Bench, and involves the reorganisation of the company’s businesses into two newly formed listed entities—DCM Shriram Fine Chemicals Ltd (DSFCL) and DCM Shriram International Ltd (DSIL)—alongside the residual company, DCM Shriram Industries. The composite scheme of arrangement also includes Lily Commercial Private Ltd.

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As per the terms of the demerger, shareholders holding equity shares of DCM Shriram Industries as on the record date will receive shares in a 1:1:1 ratio. This means that for every share held, investors will continue to hold one share in the residual DCM Shriram Industries and additionally receive one fully paid-up equity share of Rs 2 each in DSFCL and one fully paid-up equity share of Rs 2 each in DSIL.

For instance, an investor holding 50 shares of DCM Shriram Industries as of the record date will retain those 50 shares and also be allotted 50 shares each in DSFCL and DSIL upon completion of the necessary procedural formalities.

The equity shares of the two demerged entities will be credited to eligible shareholders after the implementation process is completed.

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