The board of Dhampur Sugar Mills Limited (BSE:500119) announced the spin off of Dhampur Bio Organics Limited on June 7, 2021. Under the transaction, Dhampur Sugar Mills will demerge Asmoli unit, and Mansurpur unit, Meergani unit into Dhampur Bio Organics Limited. In consideration of the transfer of the demerged undertaking from Dhampur Sugar Mills to Dhampur Bio Organics, Dhampur Bio Organics shall issue 1 (one) fully paid up equity share of face value INR 10 (Rupees Ten) each of the Dhampur Bio Organics to the shareholders of the Dhampur Sugar Mills for every 1 (one) fully paid up equity share of INR 10 (Rupees Ten) each held in the Dhampur Sugar Mills.

The turnover of the de merged divisions for the financial year 2020-2021 is INR 20.34 billion representing 48% of total turnover of Dhampur Sugar Mill. The Scheme is subject to the receipt of approval from the requisite majorities of shareholders and creditors of the Companies, the NCLT (Allahabad bench), SEBI, the stock exchanges and such other approvals, permissions and sanctions of regulatory and other authorities, as may be necessary. The transaction is approved by the Board of Directors of Dhampur Sugar Mills.

As of January 29, 2022, shareholders of Dhampur Sugar Mills approved the transaction. As of April 28, 2022, The Hon'ble National Company Law Tribunal, Allahabad Bench (‘NCLT') has sanctioned the Scheme of Arrangement. The meeting of Board of Directors has been scheduled on May 4, 2022, inter alia to fix Record Date.