Nicholas Piramal India has received sanction from High Court, Mumbai for demerging its NCE Research Unit into a separate company called NPIL Research and Development Ltd (NRDL) with effect from April 1, 2007.
In consideration for the demerger, NRDL will issue to the equity shareholders of NPIL, one equity share of Rs 10 credited as fully paid up, for every ten equity shares of Rs 2 each held in NPIL. Further, NPIL has to transfer an amount of Rs 95 crore raised through rights issue and a premium of Rs 146.32 crore thereon in August 2005 for the NCE Research unit. The premium amount will become the securities premium in the books of NRDL.
The scheme also envisages a notional reduction of equity capital of NPIL which is offset by the simultaneous capitalization of its general reserves by an amount of Rs 2.09 crore as provided in the scheme, consequent to which, the face value of NPIL's equity share remains at Rs 2.