The Board of Pudumjee Industries Ltd. (BSE:516092) announced the spin-off of the paper manufacturing business on January 17, 2015. Shareholders of Pudumjee Industries shall receive 9 equity shares of INR 1 each of Pudumjee Paper Products Ltd., the entity that will hold the paper manufacturing businesses of Pudumjee Industries, Pudumjee Pulp & Paper Mills Ltd. and Pudumjee Hygiene Products Ltd., for every 20 equity shares of INR 2 each held in Pudumjee Industries on the record date. Pudumjee Paper Products will seek a listing on the stock exchanges.

The Board of Directors of Pudumjee Industries on January 17, 2015 approved the spin off. The spinoff is subject to approvals by Stock Exchanges, SEBI, shareholders, creditors and any other regulatory authorities as applicable and sanction of the High Court of Bombay. shares of the demerged company will be listed either on BSE or NSE.

All assets and liabilities with the securities, mortgages, charges, encumbrances or liens of the transferor company will be duly assigned to the demerged company. The shareholders meeting to approve the transaction is to be held on July 20, 2015. Axis Capital Limited provided fairness opinion to Pudumjee Industries Ltd. (BSE:516092).

The transferor company will continue with the remaining business post demerger. Axis Capital is of the opinion that the share exchange ration for the demerger is fair. The transaction was approved by shareholders and creditors.

The date of the hearing for the approval of court has been set on October 16, 2015. As on January 9, 2016, the transaction has been approved by the court.