Borosil Limited Demerger Update

About the Company:

• Borosil Ltd. is a leading consumer glassware company in India. It’s India’s most trusted glassware brand since 1962. It is the market leader for consumer and laboratory glassware in India, famous for its high quality and performance.
• Product Range:
• Consumer Product Division: that consists of microwaveable glassware products, glass tumblers, storage containers, stainless steel cookware, opal dining ware, kitchen appliances, lunch boxes and stainless-steel flasks.
• Scientific Product Division: that consists of laboratory glassware, instruments, disposable plastics, liquid handling systems, explosion proof lighting glassware, glass ampoules and tabular glass vials

Recent Corporate Actions:

Borosil Limited had proposed to demerge the Scientific and Industrial Process division into Klass Pack Limited (KPL), to rename KPL as Borosil Scientific Ltd. and to get this division listed on BSE and NSE to carry on all the scientific and industrial products business of the company.

The company’s reorganization into two distinct entities was sanctioned by the NCLT on 2^nd November 2023.

Borosil Limited has announced significant developments regarding Composite Scheme of Arrangement:

1. Effective Date: Composite Scheme of Arrangement becomes effective from 2^nd December, 2023. In accordance with this:
2. Scientific and Industrial Products Business of Borosil Ltd. demerged into Klass Pack Limited;
3. Borosil Technologies Limited amalgamated into Klass Pack Limited, ceasing to be a subsidiary of Borosil Ltd.; and
4. Klass Pack Limited as well as Goel Scientific Glass Works Limited also ceases to be subsidiaries of Borosil Ltd.
5. Record Date: 5th December 2023, fixed for finalizing eligible shareholders for Borosil demerger benefit.
6. Demerger ratio: An eligible Borosil shareholder will receive 3 (Three) fully paid up equity shares of INR 1/- each of KPL (post proposed re-organisation of share capital) for every 4 (Four) fully paid up equity shares of INR 1/- each of Borosil Ltd.
7. Listing of Borosil Scientific Ltd is expected in January 2024, as per the guidance received from the management during the conference call.

The demerger allows the shareholders to have stake in both entities, providing them with opportunities to benefit from the distinct operations and growth prospects of each company.

Effect on portfolio for Niveshaay Investors: The notional difference in the value of your investment reflected in your portfolio is due to the said demerger. Also, the credit of shares of the demerged entity will be received on listing of the company.

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