India Glycols was established as a mono-ethylene glycol plant in 1983 and is now manufacturing green technology-based bulk, specialty, and performance chemicals and natural gums, spirits, industrial gases, sugar, and nutraceuticals. The company’s integrated facilities manufacture chemicals such as glycols, ethoxylates, glycol ethers and acetates, and various performance chemicals.
The product range spans spirits, chemicals, guar gum, herbal and other phytochemical extracts, and industrial gases finding application across an increasing number of industries.
The management of India Glycols Ltd has recently announced that it is entering into a composite scheme of arrangement to restructure the company. The promoter family will be merging Kashipur Holding Ltd with India Glycol Ltd and pursuant to the merger, the promoters would be directly holding shares in India Glycol Ltd . Simultaneously, there will be a demerger of the Potable Spirits and Bio fuel and Bio Pharma business into respective companies— IGL Spirits Ltd and Ennature Pharma Ltd respectively.
IGL Spirits Ltd would be issuing One equity share of Rs 10 each to the shareholder of India Glycol Ltd holding One equity share of Rs 10 each. Similarly , Ennature Bio Pharma Ltd will also be issuing One equity share of Rs 10 each to shareholder of India Glycol Ltd holding 3 equity share of Rs 10 each . Post the restructuring , the promoters will be holding 60.2% in each of the 3 companies— India Glycol Ltd ., IGL Spirits Ltd and Ennature Bio Pharma Ltd.
The shares thus issued of IGL Spirits and Ennature Bio would be listed on both the NSE and BSE stock exchanges subject to necessary approvals. Post the restructuring, the entire India Glycol business would be demerged into 3 separate companies as follows; India Glycol having the chemical and industrial gases business , IGL Spirits having the spirits and Bio fuel business and Ennature Bio Pharma and Polymer business.
The demerger will actually simplify the promoter holding structure and enable independent growth for each businesses leading to improved management and resource allocation for growth .
The proposed restructuring will also be in the interest of all shareholders and other stakeholders. For Q3FY25 , the company posted a strong financial performance across all key financial metrics mainly driven by share improvement in Bio fuel and PS segment.
India Glycol Ltd reported healthy margin improvement by 145 bps and EBITDA margin by 121 bps. Net revenue and PAT margins also have gone up significantly in the third quarter of FY25 . The future is extremely bright for India Glycol Ltd post the restructuring and the stock is a potential good purchase by portfolio investors for a 18 month time frame . Investors can buy the India Glycol stock at the current market price of Rs 1325 for long term gains . Investors can do their own due diligence and analyse their risk profile before purchasing any stock and check with their financial advisors before committing to any stock purchase .
