Kamdhenu Ltd said on Monday that its paints business had been spun off into a separate entity following an order from the Chandigarh Bench of the National Company Law Tribunal (NCLT). After the split, Kamdhenu Ltd will continue to focus on the steel business, while Kamdhenu Ventures Limited will expand the paints business.
It is now looking to complete the listing process for the newly created company during the July-September quarter, Kamdhenu Ltd said in a statement.
NCLT, Chandigarh has approved the Scheme of Arrangements including the spin-off of the painting business. The judgment will pave the way for Kamdhenu Ventures Limited, the holding company of the paint sector, namely Kamdhenu Color and Coatings Limited, to be listed by next quarter on BSE and NSE, he said. .
“Under this scheme, the company would issue one capital share with a nominal value of Rs.5 each of Kamdhenu Ventures against each existing capital share with a nominal value of Rs.10 each of Kamdhenu Ltd on a basis of mirror shareholding,” according to the statement.
In accordance with the program, which was approved earlier this month, the ownership structure of Kamdhenu Ventures Ltd after listing will be exactly the same as that of Kamdhenu Limited.
“The decision to separate the paint business is aimed at decoupling the paint business. The paint industry in India has seen an annualized growth of around 18-20%, while the company expects to grow at a much faster rate at 30-40% percent in the coming years given its wide presence and extensive network across the country,” said Kamdhenu Ltd Chief Financial Officer Harish Kumar Agarwal .
The company’s paint business recorded a growth of 19% and recorded revenue of Rs 241 crore in the financial year 2022.
Kamdhenu has its paint manufacturing plant in Chopanki (Rajasthan) where it manufactures interior and exterior emulsions, stains, colorants, designer paints, construction chemicals, waterproofing chemicals and other specialty products water-based.
It also outsources mid and low-end products like temperas, enamel and putty to other outside manufacturing entities in Rajasthan, Uttar Pradesh, Haryana and Punjab.