Lux Industries Board approves demerger plan following family settlement

Lux Industries Limited's Board of Directors was informed about a Family Settlement Agreement (FSA) among the Todi Family, who are the company's promoters. The company itself is not a party to this FSA. Following this, the Board granted in-principle approval for a scheme of demerger. This plan involves trifurcating the company's business into three verticals (A, B, and C). Verticals A and C are proposed to be demerged into two new, subsequently listed companies, while Vertical B will remain with Lux Industries. Leadership for each resulting entity will be assigned to different branches of the Todi family. The AKT Family and KKT Family will relinquish management and control rights in Lux Industries, with the PKT Family retaining control. To facilitate the demerger, the Board also approved the immediate incorporation of two new wholly-owned subsidiaries. Additionally, a revised brand licensing agreement with Biswanath Hosiery Mills Limited for 'Lux' related brands was approved.