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India Glycols Splits: Spirits Business Takes Center Stage
2 Aug
Summary
- India Glycols splits into three listed entities, valuing spirits business.
- NCLT sanctioned demerger on July 17, 2026, with listing soon.
- Demerger aims to unlock value and eliminate conglomerate discount.
India Glycols received NCLT sanction on July 17, 2026, to demerge into three standalone listed entities. This move aims to unlock value by separating its diverse businesses, including a high-margin spirits division, and reduce the conglomerate discount. The company, previously known for chemicals, also has significant ethanol production and a pharma arm.
The demerger structure splits the company into IGL Spirits Limited (ISL), Ennature Bio Pharma Limited (EBL), and the remaining India Glycols (IGL) focused on chemicals. ISL will house both the profitable potable spirits and the growing bio-fuel (ethanol) businesses, which together represent 67% of the group's net revenue.
Ennature Bio Pharma will hold the bio-pharma and bio-polymers segments, while the original India Glycols will retain its green-chemicals business. Shareholders will receive shares in the new entities. This strategic separation allows each business to operate independently, attract specific investors, and potentially achieve a more accurate market valuation.
