K M Sugar Mills Finalizes Demerger Share Allotment

1.84 crore equity shares of K M Spirits and Allied Industries Limited allotted.
INR 10 face value per share distributed to eligible K M Sugar Mills shareholders.

Reader Takeaway: Demerger process achieves administrative milestone; investors await final listing of K M Spirits on the exchanges.

What just happened

K M Sugar Mills Ltd has officially concluded the share allotment process following the demerger of its Distillery Division. The Resulting Company, K M Spirits and Allied Industries Limited, issued 1,84,00,034 fully paid-up equity shares at a face value of INR 10 each. This issuance follows the record date established on October 02, 2026.

Why this matters

This corporate action effectively completes the spin-off of the company’s distillery business into a separate entity. As part of the restructuring, the previous shares of the Resulting Company held by K M Sugar Mills have been cancelled, formally terminating the subsidiary relationship between the two firms. This allows K M Spirits and Allied Industries to operate as an independent legal entity.

Handling of fractional shares

The allotment process accounted for 7,319 fractional shares. These have been transferred to a designated trustee, Mr. Gurvinder Singh Monga. The trustee is mandated to sell these shares in the open market and distribute the net proceeds to the respective eligible shareholders within a 90-day window, ensuring adherence to SEBI regulations.

What to track next

While the allotment is complete, investors should monitor upcoming announcements regarding the listing and commencement of trading for K M Spirits and Allied Industries Limited. The company is currently in the process of securing necessary approvals from the stock exchanges to enable public trading of the newly allotted shares.