Himadri Speciality Chemicals shares gained nearly 3% to touch an intraday high of ₹692.8 apiece on Monday, September 21, following the board's approval of the tyre business demerger from Dalmia Bharat Refractories. According to NSE data, as of September 18, 2026, the company has a total market capitalisation of ₹34,528.01 crore. The stock has demonstrated strong performance with 41% gains from the beginning of the year, 4.5% increase over a month, and 56% surge over six months. Shares were trading at ₹684.15 apiece on NSE at 12:31 PM, gaining 1.3% on the day.
The board of Himadri Speciality Chemical approved a comprehensive scheme of arrangement at its meeting held on 21 September 2026. According to reports from Business Standard, the scheme involves arrangements between Dalmia Bharat Refractories (DBRL) and Himadri Speciality Chemical (HSCL), along with their respective shareholders and creditors. The approval was granted during the board meeting held on the specified date, with the scheme operating under Section 230 to 232 of the Companies Act, 2013. The Board of Directors, based on recommendations from the Audit Committee and Committee of Independent Directors, sanctioned the arrangement between DBRL and Himadri. The scheme of arrangement will be undertaken 'as a going concern, on an as-is, where-is basis', meaning the tyre business will be transferred as a fully operational entity without interruption to production.
The approved scheme provides for a share entitlement ratio of 1:260, meaning eligible shareholders of DBRL will receive one fully paid-up equity share of face value ₹1 each of Himadri for every 260 fully paid-up equity shares of face value ₹10 each held in DBRL. As reported by Business Standard, there is no cash consideration involved in the transaction. The share entitlement ratio was determined by independent registered valuers SSPA & Co and CA Manish Gadia, with a fairness opinion issued by Jajodia Equity Advisors Services Limited. Following the transaction, Himadri will issue new shares to eligible Dalmia Bharat Refractories shareholders in accordance with the specified ratio. The demerger is scheduled to take effect from 1 October 2026 or on another date as decided by the appropriate authority.
The demerged tyre business generated a turnover of ₹149.31 crores in the last financial year ended 31 March 2026, contributing 3.39% to the total turnover of the resulting company. Following the demerger completion, HSCL will issue new shares to eligible shareholders of DBRL in accordance with the share entitlement ratio established in the scheme. Upon completion, the shareholding pattern of HSCL will change slightly, with promoter and public shareholding percentages altering to 52.47% and 47.53% respectively. The new shares issued by Himadri will be listed on BSE and NSE subject to requisite approvals.
The board emphasized that the demerger aims to provide focused ownership and enable both companies to deploy resources towards businesses aligned with their strategic capabilities. Key benefits cited include strengthening strategic forward-integration across the tyre value chain, leveraging material expertise for product customisation, and realising operational synergies in sourcing, manufacturing, and logistics. The demerger is anticipated to enhance focus, ownership, and operational efficiency for the Tyre Business, with the scheme aiming to align management resources more effectively with strategic objectives to drive long-term growth and value creation. The board stated that this corporate restructuring will provide each company involved with better strategic and financial flexibility to pursue their individual business goals.
The transaction is subject to approvals from multiple regulatory bodies including stock exchanges, SEBI, the National Company Law Tribunal, and the respective shareholders and creditors of both companies. The scheme is also subject to approvals from the Securities Exchange Board of India (SEBI) and the National Company Law Tribunal (NCLT). The trading window for designated persons remains closed until 48 hours after the disclosure of the meeting outcome. Once all clearances are obtained, the deal is expected to strengthen HSCL's positioning in tyre-related speciality chemicals and materials, potentially altering its operational scale and stakeholder base through the share issuance and expanded business footprint.
