Everything you need to know about demerger of Kesoram Industries Limited

Kesoram Industries Limited has announced a Composite Scheme of Arrangement with UltraTech Cement Limited, which will be effective from March 1, 2025. As part of this scheme, equity shareholders of Kesoram Industries will receive 1 fully paid equity share of UltraTech Cement (face value ₹10 each) for every 52 fully paid equity shares of Kesoram Industries (face value ₹10 each).

Record Date for Share Allotment
The company had fixed March 10, 2025, as the record date to determine the shareholders eligible to receive shares in UltraTech Cement. You can check the announcement here.

Who is eligible to receive UltraTech Cement shares?

You will be eligible for the share allotment if you hold Kesoram Industries shares on or before March 7, 2025.

When will I receive the shares of UltraTech Cement Limited?
The credit of shares typically takes 30 - 45 days from the record date. You will receive an email from CDSL once the shares are credited to your demat account.

How will fractional shares be handled?
Any fractional shares will be credited to your primary bank account.

When will the allotted shares start trading on the exchanges?
The shares of UltraTech Cement issued under the scheme are expected to start trading on the exchanges after the completion of the demerger process and regulatory approvals.

The exact listing and trading commencement date are yet to be announced by the exchanges and the company. You can follow the company announcement section for updates here.


What does this mean for shareholders?

If you had 52 shares of Kesoram on February 25, 2025, when the announcement was made, their total value would have been: 52 × 209.29 = ₹10,883.08. At the same time, UltraTech Cement was trading at ₹10,964.15.

Now, instead of holding just Kesoram shares, you’ll receive 1 UltraTech Cement share for every 52 Kesoram shares you own. The final value will depend on how both stocks trade after the demerger.

What portion of Kesoram was demerged?

Kesoram demerged its cement business into UltraTech Cement as part of this arrangement. After the demerger, Kesoram no longer had the cement business, and its value reflected its remaining operations.

I bought the 5 Kesoram shares at 1000 rs before 2024, and now I have the same 5 shares at 50 rs. where are balance money gone