Century Plyboards Monday said its board has approved demerger of its ferro alloys and cement division into a new wholly-owned subsidiary Star Ferro And Cement.
The ferro alloys and cement division of Century Plyboards includes ferro alloys and power plant in Meghalaya and its investment in a cement producing company in the state.
The remaining businesses, which include manufacture of plywood laminate, veneer and allied products, will continue to be managed by Century Plyboards.
Star Ferro and Cement will issue to Century Plyboards shareholders one equity share of Re 1 of the company for every one equity share of Re 1 held in Century Plyboards, it said.
“The demerger will enable the said businesses to be carried on more conveniently and advantageously and will unlock the capacity of each of the businesses to raise and access larger funds for running, growth and expansion thereof on the basis of their individual strengths and operating parameters and independent evaluation,” the company said in its notification to the exchange.