NCLT Allahabad Allows India Glycols To Proceed With Bio Pharma, Spirits Demerger

The National Company Law Tribunal (NCLT) at Allahabad has recently allowed India Glycols Limited, a listed green chemicals and bio-based products company, to move ahead with the proposed demerger that will split its biopharma business and its spirits and biofuel business into separate companies.

The tribunal allowed its first motion application, dispensing with meetings of secured creditors and the resulting companies' shareholders

A bench of Judicial Member Praveen Gupta and Technical Member Ashish Verma said it was satisfied that the dispensations sought at this stage could be granted, observing, “We are of the view that the dispensation of the meetings prayed for by the Applicant Companies deserves to be allowed.”

India Glycols approached the tribunal with a joint first-motion application along with two resulting companies, Ennature Bio Pharma Limited and IGL Spirits Limited. The company currently runs multiple businesses under one umbrella, including bio-based speciality chemicals, potable spirits, biopharma, and biofuels.

Under the scheme, the biopharma business will move into Ennature Bio Pharma, while the spirits and biofuel business will be housed in IGL Spirits. The appointed date for the restructuring has been fixed as April 1, 2026.

The companies told the tribunal that although each business has strong growth potential, they operate in different markets and face different risks. They said reorganizing the businesses would allow each entity to manage capital and resources based on its own industry needs, attract focused investors, and operate more efficiently.

Taking note of the material placed on record, the tribunal allowed meetings of India Glycols' equity shareholders and unsecured creditors with dues above Rs.1 lakh to be convened, while dispensing with the meeting of secured creditors after recording that consent affidavits had been received from 95.46 percent of them in value.

It also dispensed with meetings of shareholders and creditors of the two resulting companies, noting that they had already given consent and had no secured or unsecured creditors. With these directions, the tribunal disposed of the first-motion application.

For Applicants: Advocates Hirak Mukhopadhyay, Varun Yadav, and Atul Pandey