According to reports from CNBC TV18, Maharashtra Seamless Ltd. informed exchanges on Wednesday that its board of directors has approved the demerger of the company into MSL Seamless Tubes Ltd. and United Seamless Ltd., subject to various regulatory approvals. The latest disclosure under Regulation 30 of SEBI Listing Regulations reveals the significant financial scale of the demerger, with the combined entities generating ₹4,671 crore turnover in FY 2025-26, representing 100% of the total company turnover. The demerger is subject to requisite approvals and sanctions from the jurisdictional bench of National Company Law Tribunal (NCLT), approval of shareholders and/or creditors of Maharashtra Seamless, and approval from the Central government or competent authorities as directed by NCLT.
As reported by CNBC TV18, the demerged undertaking 1, MSL Seamless Tubes Ltd., will comprise the seamless pipe manufacturing business located at Mangaon, Maharashtra with 1.25 lakh MTPA capacity and a captive solar power plant at Beed, Maharashtra with 10 MW capacity. The second demerged entity, United Seamless Ltd., will include the seamless pipe manufacturing facility at Narketpally, Telangana with 2 lakh MTPA capacity, along with solar power plants at Khetusar of 20 MW and Pokhran of 5 MW in Rajasthan. The latest disclosure shows that United Seamless will also include the rig Jindal Explorer as part of its operations. Both entities will retain their specified assets and liabilities respectively.
According to CNBC TV18, post-demerger, promoter entities are indicated to hold 1.88 crore shares or 70.3% equity in each of the demerged companies, while public shareholders are indicated to hold 79.59 lakh shares or 29.69% stake in each firm. Existing shareholders of Maharashtra Seamless will receive one equity share each of both demerged entities for every five shares of Maharashtra Seamless they own as on the record date, which is yet to be determined. At the end of the June quarter, nearly 80,000 small retail shareholders with authorized share capital of up to ₹2 lakh had a 10% stake in the company. The latest disclosure indicates that MSL Seamless Tubes Ltd. will issue fully paid-up equity shares to eligible shareholders upon the scheme becoming effective.
As reported by CNBC TV18, the latest disclosure under SEBI regulations reveals the operational turnover of the demerged entities for FY 2025-26. MSL Seamless Tubes Ltd. generated ₹793 crore turnover representing 16.98% of total company turnover, while United Seamless Ltd. contributed ₹693 crore or 14.84% of the total turnover. The remaining operations accounted for ₹3,185 crore or 68.18% of the company's total turnover. Shares of Maharashtra Seamless ended 1.1% higher on Wednesday at ₹693. The stock has risen 25% so far this year, indicating positive market sentiment following the demerger announcement.
