India Glycols officially demerged into three separate entities on Tuesday, September 1, 2026, following approval from the NCLT received on July 17, 2026. The company filed the certified true copy of the National Company Law Tribunal (NCLT) order with the Registrar of Companies on this date, finalizing the separation of its business verticals. However, the stock experienced a dramatic 79.35% intraday crash on Wednesday, September 2, with shares opening at ₹229.85 compared to the previous close of ₹1,112.90. According to latest reports, the stock has since recovered to ₹241.30 as markets adjusted to the new structure. The demerger created three distinct entities with specialized business focus areas and strong financial performance. India Glycols Limited will house chemicals, glycols, bio-glycols, new speciality products and industrial gases businesses, reporting revenue of ₹345 crore and EBITDA of ₹40.2 crore in Q1FY27. IGL Spirits Limited will own the spirits business, including IMFL, country liquor and bio-fuel businesses, with Q1FY27 revenue of ₹694 crore and EBITDA of ₹120 crore. Ennature Bio Pharma Limited will house the bio-pharma and bio-polymers businesses, reporting revenue of ₹90 crore and EBITDA of ₹10 crore in the June quarter. The stock opened at ₹229.85 and touched a low of ₹229 and high of ₹241.30 during the session, with volume-weighted average price (VWAP) standing at ₹239.07.
Under the demerger structure, existing shareholders will receive shares in the newly separated companies based on their holdings in India Glycols. For every 1 India Glycols share held on the September 2, 2026 record date, shareholders will receive 1 share of IGL Spirits Limited and 1 share of Ennature Bio Pharma Limited for every 3 India Glycols shares. As per the latest reports, if an investor holds 300 India Glycols shares on the record date, they will receive 300 IGL Spirits shares and 100 Ennature Bio Pharma shares, resulting in 700 total shares across all three companies. IGL Spirits and Ennature Bio Pharma will apply for listing on the NSE and BSE, with the share entitlement ratio fixed as 1:1 for India Glycols and IGL Spirits and 3:1 for India Glycols and Ennature Bio Pharma. The apparent ₹79% decline is not a genuine fall in the company's market value, but rather an adjustment following the corporate action where ₹1,112.90 is the pre-demerger/split reference price, while ₹229.85 is the adjusted trading price. India Glycols Limited remains listed on both BSE and NSE, while the management of IGL Spirits Limited and Ennature Bio Pharma Limited will apply for separate listings on the respective bourses.
According to the company's statement, the demerger aims to remove the conglomerate discount and give each business sharper management focus. The restructuring is intended to allow investors to value the three businesses separately rather than as part of a diversified conglomerate structure. Each entity will have dedicated focus, enabling improved management oversight and more efficient allocation of resources towards growth. The separate companies can manage their capital, investments and resources according to their individual needs, helping each business use its money more efficiently and pursue its own expansion plans. This strategic move is designed to unlock value for shareholders by allowing each business to operate as a pure-play entity in its respective market segment. The separation also signals a deliberate pivot toward focused GMP governance and dedicated regulatory positioning, particularly for Ennature Bio Pharma's biopharma operations.
India Glycols has demonstrated exceptional financial growth with consolidated revenue of ₹2,988.44 crore for Q1 FY27, translating to a year-on-year growth of 19.39%. The company's consolidated net profit grew by 32.18% year-on-year to ₹96.83 crore in Q1 FY27, up from ₹73.25 crore in Q1 FY26. Over the last five years, India Glycols' revenue and net profit have grown at a CAGR of 13% and 14% respectively. The company maintains strong return ratios with ROCE at 12.4% and ROE at 11.3%, while its earnings per share (EPS) stands at ₹48 and debt-to-equity ratio is 0.58x. In FY26, the company's revenue was generated from different business segments with Bio-Fuel contributing the highest share at 35%, followed by PS at 32% and BSPC at 28%, while EB contributed the remaining 5% of total revenue.
According to latest reports, shares of India Glycols are showing up to 79-80% crash in some trading apps as the specialty chemicals and spirits player traded ex-demerger. The stock had ended 3.07% lower at ₹1,112.90 on Tuesday, reflecting the post-demerger price adjustment as the original listed company no longer includes the separated businesses. Under the restructuring, the existing India Glycols will continue as the listed chemicals business, while the spirits and biopharma businesses will be housed under two separate entities — IGL Spirits Ltd and Ennature Bio Pharma Ltd. The key monitorables following the demerger will be the allocation of debt and assets across the three entities and the timeline for the proposed separate listings of IGL Spirms and Ennature Bio Pharma on the BSE and NSE. The focused structure may help management make quicker business decisions, allocate capital more efficiently, and invest more specifically in growth opportunities across each business segment. The immediate market impact involves a special pre-open session on September 2, 2026 to determine the post-demerger stock price, with short-term volatility anticipated as the stock adjusts to the de-merged value of its specialty chemicals business.
