Maharashtra Seamless approves demerger of undertakings

Maharashtra Seamless Limited (MSL) announced its Board of Directors has approved a scheme of arrangement for the demerger of two undertakings into its wholly-owned subsidiaries, MSL Seamless Tubes Limited (MSTL) and United Seamless Limited (USL). Demerged Undertaking 1, comprising seamless pipe manufacturing and a solar power plant, will be transferred to MSTL. Demerged Undertaking 2, including another seamless pipe facility and solar power plants, will go to USL. The appointed date for the demerger is October 1, 2026. This move is subject to NCLT and shareholder approvals. In FY25-26, Demerged Undertaking 1 had a turnover of ₹793 crore (16.98% of total), and Demerged Undertaking 2 had ₹693 crore (14.84% of total). The scheme involves a significant change in the shareholding pattern of the resulting companies, with public shareholders expected to hold approximately 29.7% in MSTL and a similar structure anticipated for USL.