Oct 22, 2008

Welspun India to de-merge its divisions

16 Sep 2008 | 10:16

Welspun India to de-merge its divisions

Welspun India, part of US$ 3 billion Welspun Group today announced the
de-merger of its distribution & marketing and investment divisions
into two separate companies at cost basis. This will allow strategic
focus on specific tiers of the businesses and thus shall enable better
business control, flexibility on business operations and leveraging
International focus of the group.

distribution & marketing company which will hold all the
international businesses and Welspun Retail will be known as Welspun
Global Brands whereas the investment company will be known as Welspun
Investments. As a part of this de-merger, WGBL will issue fresh shares
to promoters and shareholders of WIL in lieu of promoters' and WIL's
shareholding in WRL and thus WGBL will hold entire equity of WRL.

current shareholders of WIL will be allotted new shares in WGBL and
WINV i.e. - shareholders of every 100 shares in WIL will be given 10
shares of WGBL and 5 shares of WINV. Post demerger, promoter and
non-promoter shareholding in WGBL shall be 57.6% and 42.4%
respectively. Upon de-merger, both WGBL and WINV will automatically be
listed separately on Indian stock exchanges i.e. NSE and BSE.

The company made this announcement during the trading hours today, 16 September 2008.