The Board of Directors of Chembond Chemicals Limited (CCL) approved a composite scheme of arrangement providing for (i) the demerger of the construction chemicals and water technologies businesses into Chembond Chemical Specialties Limited (CCSL) on a going concern basis; (ii) the amalgamation of Chembond Clean Water Technologies Limited into CCSL; and (iii) the amalgamation of Chembond Material Technologies Private Limited, Phiroze Sethna Private Limited, and Gramos Chemicals (India) Private Limited into CCL.

Additionally, upon effectiveness of the composite scheme of arrangement, the corporate name of CCL shall be changed to Chembond Material Technologies Limited, and the corporate name of CCSL to Chembond Chemicals Limited. These actions once effective upon approval by shareholders, creditors, and regulators, will result in two listed entities aligned along business lines.

Sameer V. Shah, Chairman, Chembond Chemicals Limited, said, “Chembond has grown over the years with diverse businesses, acquisitions, and subsidiaries operating under one listed company structure. The Board has today approved this demerger and restructuring, to create two independent listed verticals with an aim to empower both these entities to independently pursue their growth strategies with a sharper focus.”

Nirmal V. Shah, Managing Director, added, “This scheme has been approved by the Board with the intent that it will be value accretive for all our stakeholders. While allowing for business growth, we acknowledge that the nature of risk and competition involved in each of these businesses is distinct from others and that each business or entity can attract a different set of talent, investors, strategic partners, lenders, and other stakeholders.”