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Maharashtra Seamless Shares Drop 6 Percent Following Demerger Announcement
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CNBC TV18•08-10-2026, 12:13
Maharashtra Seamless Shares Drop 6 Percent Following Demerger Announcement
- •Shares of Maharashtra Seamless Ltd. fell up to 6 percent on Thursday after announcing a major demerger plan.
- •The board approved dividing operations into MSL Seamless Tubes Ltd. and United Seamless Ltd., subject to regulatory and shareholder approvals.
- •MSL Seamless Tubes will house the Maharashtra seamless pipe and solar operations, while United Seamless will include the Telangana and Rajasthan facilities.
- •Existing shareholders will receive one equity share in each of the two demerged entities for every five shares held in Maharashtra Seamless.
- •Promoter entities are set to hold a 70.3 percent stake in each new firm, with public shareholders holding the remaining 29.69 percent.
Key Questions Answered
Shares of Maharashtra Seamless declined after the company's board approved a demerger plan to separate its operations into two distinct entities, MSL Seamless Tubes Ltd. and United Seamless Ltd.
Existing shareholders of Maharashtra Seamless will receive one equity share in each of the two demerged entities for every five shares they own as of the record date, which will be determined later.
MSL Seamless Tubes Ltd. will comprise the seamless pipe manufacturing business located in Mangaon, Maharashtra, with a capacity of 1.25 lakh MTPA, along with a 10 MW captive solar power plant at Beed, Maharashtra.
