SP Group Stock To Allot 4 Fully Paid-up Equity Shares Against 1 But With A Twist

As of Friday's closing session, Forbes & Company has a market capitalization of Rs 1,174.03 Cr, making it a small-cap company in the consumer discretionary category. Forbes & Company Limited is a trading, shipping, and manufacturing company. The Shapoorji Pallonji Group (SP Group), the company's parent, was founded in India in 1865. The SP Group is a multinational organisation with a strong presence in the fields of engineering and construction, real estate, infrastructure, water, energy, and financial services.

Forbes & Company News

The company said in a regulatory filing on Friday that "As per Para 8.1 of the Scheme, in consideration for the demerger, Forbes Precision Tools and Machine Parts Limited (FPTL) will be required to issue and allot 4 (four) fully paid-up equity shares of INR 10 each to the equity shareholders of Forbes & Company (FCL) Limited (whose names appear in the register of members as on the Record Date) against 1 (one) fully paid-up equity share of INR 10 each held by them in FCL."

"In compliance with the Regulation 42(1)(e) of the Securities Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Board of Directors of the Company, vide resolution dated February 23, 2024, has fixed Thursday, March 7, 2024 as the Record Date for the purposes of determining the shareholders of FCL to whom the fully paid-up equity shares of FPTL would be issued and allotted pursuant to the Scheme of Arrangement," Forbes & Company further added in the statement.

The above announcement is in the matter of scheme of arrangement between the company (Demerged Company) and Forbes Precision Tools and Machine Parts Limited (Resulting Company) and their respective shareholders.

The Shapoorji Pallonji Group's listed subsidiary, Forbes and Company, announced in September 2022 that its precision tools and machine components division will be demerging. According to the company's regulatory filings, the new organisation will be known as Forbes Precision Tools and Machine Parts Limited (FPTL) in accordance with the arrangement scheme that the board of directors authorised.

Forbes & Company Financials

The company reported a consolidated net income of Rs 74.27 Cr during the quarter ended 31st December 2023 compared to Rs 111.86 Cr in the same quarter of the previous fiscal. Its net expenses stood at Rs 61.96 Cr which was Rs 107.03 Cr in the year-ago quarter. Forbes and Company said its EBIT stood at Rs 12.31 Cr in Q3FY24 as against Rs 4.83 Cr in Q3FY23. Its consolidated net profit stood at Rs 10.83 Cr in the quarter under review which was a loss of Rs 4.08 Cr in Q3FY23.