Demergers occur when a company splits off one or more parts of its business into separate entities to focus on its core verticals and streamline its operations.
A “swap ratio” is the exchange rate at which shareholders of a company receive stocks of the demerged entity for each share they hold in the original firm.
From ITC to Tata Motors, here is a list of companies going for a demerger in 2025!
Record date: Jan 6, 2025
Swap ratio: 1:10
ITC will demerge its hotel business, ITC Hotels, and eligible shareholders will receive 1 share of ITC Hotels for every 10 stocks of ITC they own.
Swap ratio: 1:1 (for each demerged entity)
Vedanta plans to demerge its aluminium, oil and gas, power, steel and ferrous materials, and base metals businesses. However, it later announced the retention of its base metals vertical.
Swap ratio: 1:1
Tata Motors will demerge its commercial vehicle vertical into a separate entity.
Swap ratio: 1:1
ABFRL announced the demerger of Madura Fashion & Lifestyle Business into a listed company named ABLBL.
Swap ratio: 1:1
In May, the Siemens board gave a nod its nod to the demerger of its energy business into a separate listed company named SIEL.
Thanks for reading!
See next