Lux Industries demerger: Lux Industries' board of directors on April 23, in-principle approved that the company will be split-up in three ways, separating into three separate verticals, as per the family settlement agreement of the promoter group, the Todi Family, according to an exchange filing released on Thursday night.
The NSE filings showed that Lux Industries' promoter and promoter group, the Todi Family, entered a family settlement agreement (FSA), however, the company was not part of the said FSA.
"Pursuant to the FSA, the Board has accorded its in-principle approval for the scheme of demerger," the company informed the stock exchange.
In its in-principle approval, Lux Industries highlighted that the board originally approved this demerger proposal after a board meeting on November 22, 2023. The details showed that the company will be split into Vertical A, Vertical B, and Vertical C as part of the deal.
As of date, the board has not announced the effective date of the demerger proposal, which will be later communicated to the shareholders.
Shares of Lux Industries closed 10% higher at ₹1,747.05 after Thursday's trading session, compared to ₹1,588.25 at the previous market close, according to NSE data. The company announced its demerger update after market operating hours on April 23.
Post demerger leadership
Lux Industries also disclosed that post the demerger, the existing businesses of Vertical A and Vertical C would be demerged into two resulting companies, while the business of Vertical B shall continue to remain in the company's name.
The Vertical B business is set to be led by promoter Pradip Kumar Todi or any other member from PKT Family.
One of the resulting companies for Vertical A is proposed to be led by Ashok Kumar Todi or any other member from AKT Family, according to the exchange filing. While the Vertical C is proposed to be led by Navin Kumar Todi or any other member from KKT Family.
After the demerger, AKT Family and KKT Family will cease to hold any right in the management and control in the listed entity Lux Industries, which will be managed by the promoter group, PKT Family.
For the demerger move, the company's board approved an incorporation of two new wholly-owned subsidiaries based out of West Bengal with the name of "Lux," according to the exchange filing.
Lux Industries share price
Lux Industries shares were trading 3.85% lower at ₹1,683.45 during Friday's market session, compared to ₹1,747.05 in the previous stock market close, according to NSE data. The company announced its update after the market operating hours on Friday.
Shares of Lux Industries have lost 9% in the last five years, but the company's shares have delivered more than 24% in the last three years, NSE data showed. The company's stock has risen 16% in the one year period.
On a year-to-date basis, Lux Industries shares have gained 50% so far in 2026, and have risen 77% in the past one month. The company's stock was trading 12% higher over the last five market sessions on the Indian stock market.
Disclaimer: This article is purely for informational purposes and should not be considered investment advice from Upstox. Please consult with a financial advisor before making any investment decisions.