Forbes Gokak approved plan to demerge its textile and knitwear business into a different company.
Company is planning demerger for improving profitability of the business. Board of the company gave approval as per a scheme of arrangement under section 391 of the Companies Act.
Shareholders of Forbes Gokak will get one share of the new company for every two shares held, an official said.
Half of the revenue of the company is generated by textile division of the company which registered profit of Rs21.6 crore and generated revenue of Rs579.1 crore in the last fiscal year.
marketing@alchempro.com
