Maharashtra Seamless approves demerger scheme, shares fall 4%; details here

Maharashtra Seamless Ltd shares fell 4% on Thursday morning after the company’s board approved a composite scheme of arrangement involving the demerger of two business undertakings into two wholly owned subsidiaries. The scheme is subject to requisite regulatory, NCLT, shareholder and other approvals.

On the restructuring front, the company plans to demerge Demerged Undertaking 1 into MSL Seamless Tubes Ltd and Demerged Undertaking 2 into United Seamless Ltd. The first undertaking includes the seamless pipe manufacturing business at Mangaon, Maharashtra, along with a 10 MW captive solar power plant at Beed. The second comprises the seamless pipe manufacturing facility at Narketpally, Telangana, solar power plants at Khetusar and Pokhran in Rajasthan, and the Jindal Explorer rig.

Maharashtra Seamless shares touched a low of Rs 669, down 3.56% from the previous close of Rs 693.65. The stock opened at Rs 699.90 and hit a high of Rs 704.15.

Under the proposed scheme, shareholders of Maharashtra Seamless will receive one equity share of MSL Seamless Tubes Ltd and one equity share of United Seamless Ltd for every five equity shares held in Maharashtra Seamless. The company said the share exchange ratio will maintain the same proportionate shareholding structure and make the scheme value-neutral for its shareholders.

The two businesses being demerged contributed Rs 793 crore and Rs 693 crore in operational turnover in FY26, accounting for 16.98% and 14.84%, respectively, of Maharashtra Seamless' total turnover of Rs 4,671 crore.

The restructuring is aimed at creating focused and independent business verticals, allowing dedicated management attention, technology-specific operational focus, more efficient capital allocation and greater transparency. The company said the demerger is also expected to support long-term value creation for stakeholders.