Shares of India Glycols Ltd. experienced a significant decline of nearly 80% in various trading applications today, following the company's ex-demerger trading. The specialty chemicals and spirits manufacturer restructured its operations into three distinct publicly traded entities, focusing on chemicals, spirits, and bio-pharma.
Demerger Creates Three New Entities
The strategic demerger resulted in the formation of three new companies:
- India Glycols: Retaining the chemicals, glycols, bio-glycols, specialty products, and industrial gases businesses. This segment reported a net revenue of Rs 345 crore in the June 2026 quarter.
- IGL Spirits: Housing the spirits business, including Indian Made Foreign Liquor (IMFL), country liquor, and bio-fuels. This entity recorded Rs 694 crore revenue in the June 2026 quarter.
- Ennature Bio Pharma: Focusing on bio-pharma and bio-polymers businesses, with Rs 90 crore revenue in the June 2026 quarter.
Both IGL Spirits and Ennature Bio Pharma are slated to seek listings on the BSE and NSE exchanges.
Share Entitlement and Market Impact
The share entitlement ratio for the demerger was set as follows:
- Shareholders received one IGL Spirits share for every one India Glycols share held as of the record date (September 2, 2026).
- Shareholders received one Ennature Bio Pharma share for every three India Glycols shares held.
On Wednesday, India Glycols shares opened at Rs 225, marking a 79.76% fall from its previous close of Rs 1,111.70 on Tuesday. This indicated drop is attributed to the subtraction of the value of its spun-off bio-pharma and spirits businesses from the original stock. The total market capitalization of the restructured India Glycols stood at approximately Rs 1,540-1,550 crore.
Rationale Behind the Restructuring
This restructuring aims to provide each business segment with dedicated focus, enhance management oversight, and facilitate more efficient allocation of capital and resources tailored to individual business requirements. While the stock saw a significant single-day adjustment due to the demerger, India Glycols had previously delivered strong returns, gaining over 35% in the last year and nearly 235% over the past five years.
The company's decision to spin off its diverse operations is a strategic move to unlock value and allow each segment to pursue its growth trajectory independently.