The stocks of Forbes & Co surged higher hitting the five percent upper circuit on Wednesday 28th September. This interesting development came soon after the declaration of demerger of its business in precision tools, a couple of days earlier.
Forbes Precision Tools and Machine Parts (FPTL) will be carved out from Forbes & Co, without any cash component consideration involved in the procedure of arrangement thereby bringing the demerger into effect, as mentioned by the company in its regulatory filing procedure.
Four fully paid-up equity shares of ₹ 10 per share, of the new company (FPTL) shall be issued and allotted to the equity shareholders of the demerged company (Forbes & Co) for everyone fully paid up an equity share of ₹ 10 each held by its shareholders in the demerged company as on effective date.
The company will not undergo any alteration in its shareholding nature because of this demerger.
The Forbes business of precision tools division was ₹ 179.22 crores for the financial year ended March 31, 2022, which accounted for 76.25 percent of the organization’s total turnover.