Welspun India spins off wings into separate firmsSeptember 16th, 2008 - 2:52 pm ICT by IANS
New Delhi, Sep 16 (IANS) Home furnishings and textiles maker, Welspun India, part of the $3-billion diversified Welspun Group, Tuesday announced the de-merger of two divisions - distribution and marketing, and investment - into two separate companies on a cost basis.“The move will allow strategic focus on specific tiers of the businesses and enable better business control, flexibility on business operations and leveraging international focus of the group,” a company statement said.
“Welspun India shareholders will get 10 shares in the marketing company and five shares in the investment firm for every 100 shares held,” it said.
The distribution and marketing company, which will control all international businesses, as well as Welspun Retail, will be known as Welspun Global Brands.
The investment company will be known as Welspun Investments.
Upon the demerger, which will be completed by April next year, the two new firms will be listed separately on the National Stock Exchange and the Bombay Stock Exchange.
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