Shapoorji Pallonji Group's listed-arm Forbes & Co announces demerger of precision tools business

Forbes & Company Ltd, the listed arm of Shapoorji Pallonji Group, announced the demerger of its precision tools business.

As per the scheme of arrangement approved by the company's board of directors, a new entity - Forbes Precision Tools and Machine Parts Limited (FPTL) - will be carved out from Forbes & Co, a regulatory filing stated.

"The scheme was reviewed and recommended to the board by the committee of independent directors and the audit committee of the company," it said, adding that the demerger requires approval from the Securities and Exchange Board of India, stock exchanges, shareholders and creditors of the company and the National Company Law Tribunal.

There is "no cash consideration" involved in the scheme of arrangement that will bring the demerger into effect, Forbes & Co said.

The company has determined the following share exchange ratio for the allotment of the equity shares of FPTL: "Four fully paid up equity shares of Rs 10 each of the resulting company (FPTL) shall be issued and allotted to the equity shareholders of the demerged company (Forbes & Co) for every one fully paid up equity share of Rs 10 each held by them in the demerged company as on the record date."

The turnover of precision tools business for Forbes for the financial year ended March 31, 2022 was Rs 179.22 crores, and accounted for 76.25 percent of the company's total turnover, it added.

While the precision tools business has been demerged, Forbes & Co will remain directly engaged in the businesses of industrial automation, coding and medical devices; real estate; and investment into subsidiaries, joint ventures and associates.