Refex Industries shares jump over 19%; here is why

The stock jumped as much as 19% to hit a high of ₹402.40 on the NSE.

Shares of Refex Industries skyrocketed after the company, in its press release on Monday, said that its Board of Directors has approved a composite scheme of amalgamation and arrangement to restructure and unlock the potential of its Green Mobility Business for all the shareholders of the company.

As per the scheme, Refex Green Mobility Limited (‘RGML’), a wholly owned subsidiary, will be merged into Refex Industries, followed by the demerger of the Green Mobility Business unit into a newly incorporated entity, i.e., Refex Mobility Limited (‘RML’).

RML is proposed to be independently listed on BSE and NSE, creating two focused platforms where Refex Industries will consolidate its core strengths across ash and coal handling and RML will be dedicated to sustainable mobility solutions using clean-fuelled vehicles, the press release added.

Commenting on the development, Anil Jain, Chairman and Managing Director of Refex Industries, said, “The Board’s approval of this restructuring marks a milestone in Refex’s growth journey. By creating a dedicated listed platform for our Green Mobility Business, we will sharpen focus, unlock value for shareholders across both RIL & RML, and reaffirm our commitment to clean, technology-driven urban corporate transport.”

The implementation of the scheme will be subject to necessary approvals from shareholders, creditors, stock exchanges, SEBI, NCLT and other applicable regulatory authorities.

"It is further informed that upon completion of the scheme, the shareholders of Refex Industries will receive equity shares in RML in the same proportion as their existing shareholding in Refex Industries as on the record date, thereby creating a mirror shareholding structure," the company added.

About Refex Industries Limited

Established in 2002, Refex Industries, headquartered in Chennai, offers sustainability-driven solutions in India. It is a specialist manufacturer and refiller of refrigerant gases. The company offers a range of non-ozone-depleting refrigerant gases known as hydrofluorocarbons (HFC), which are used in air conditioners, refrigerators and refrigerating equipment. It is engaged in supplying automotive air conditioning gases in disposable cans.