A newly-formed subsidiary, Harmony would be listed on the National Stock Exchange as well as BSE, sources told DNA.
RPG Group, controlled by Harsh Goenka, plans to list Harmony Plantations Ltd, which was carved out of Harrisons Malayalam Ltd as part of the arrangement for division of the group businesses between Harsh and Sanjiv, the two sons of Rama Prasad Goenka.
Harmony, a newly-formed subsidiary, to which some plantations of Harrisons Malayalam have been transferred, would be listed on the National Stock Exchange as well as BSE, sources told DNA.
The management control of Harmony would be with Harsh Goenka, while Sanjiv, who is now Harrisons’ chairman, would be in charge of the existing company.
The subsidiary nature of Harmony is temporary till it gets listed, sources said. The listing, however, will take some time as the process of corporate restructuring has been challenged by Kerala, where most of the plantations are located.
The state government has reportedly objected to the transfer of the plantations to the newly formed company, claiming that the scheme was formulated to scuttle efforts by the state to take over lands for which the company did not have proper documents.
The board of directors and the shareholders of Harrisons Malayalam had in August approved the demerger of six rubber estates and seven tea estates of Harrisons into Harmony Plantations, splitting the company into equal parts, as Harrisons’ shareholders will be entitled to shares in the newly formed subsidiary in the same proportion as their current shareholding.
The Kerala High Court did not prevent the holding of the shareholders’ meeting, which took place in August, but said the “respondent shall not alienate any part of the property involved in this case, without previous permission of this court, till the disposal of the petition”.
Harrisons has 23 tea estates, eight rubber factories and 12 tea factories across Kerala, Karnataka and Tamil Nadu, of which Isfield, Koney, Lahai, Kaliyar and Palapilly rubber estates and Achoor, Chundale, Sentinel Rock, Touramulla, Arrapetta, Mayfield and Upper Surinalle tea estates are being demerged.
Following the segregation of businesses, Sanjiv Goenka has re-christened the identity of his share as the RP-Sanjiv Goenka group.
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