Industries has withdrawn its scheme for demerger of
its copper business. The company has cited its plan
to raise resources from the international markets as
the reason for the same.
Industries informed the Bombay Stock Exchange as well
as the Bombay High Court that its plans to raise resources
in the international markets are now well advanced and
the market capitalisation of the company has increased.
In the changed circumstances, the board has decided
not to proceed with the demerger scheme.
this year, Sterlite Industries had decided to hive off
its copper business and its investments to a new company.
As per the demerger plan, the residual Sterlite company
was to retain power transmission lines, aluminium conductors
and other non-metal assets in the company.
copper business was to be transferred to the new company
as a going concern with effect from 1 April 2003. The
assets and liabilities of the copper business and investments
will be transferred at their book values.
the income-tax department and the minority shareholders
of the company filed different petitions in the Bombay
High Court and blocked the demerger plan. The I-T department
had informed the Bombay High Court that Twinstar Holding
Ltd, which controls a 54-per cent stake in Sterlite
Industries Ltd, has to pay Rs 267.50-crore I-T arrears
to the department.
I-T consul Benni M Chaterjee: "The department has
informed the court that Sterlite Industries has yet
to pay the tax arrears of Rs 267.50 crore to the department
and unless and until the company pays the arrears, the
demerger should not be approved. Following this, without
much argument, Sterlite consul Virag Tulzapurkar withdrew
the company''s petition to demerge the copper division."
I-T affidavit filed in the court states that Dwarkaprasad
Anilkumar Investment owes Rs 35. 70 crore, Pravin Navin
Investment owes Rs 163.60 crore while Sterlite Copper
Rolling Mills Rs 24.20 crore to the department.
department stated that if the demerger scheme is approved
by the court, the shares attached by the I-T department
as the revenue of SIL, may undergo substantial devaluation
and ultimately will have an effect on the revenue of
the states. Due to the devaluation, the market price
of the shares will be reduced and the very purpose of
attaching the shares towards the dues of the IT will