LG Balakrishnan & Bros Ltd has informed BSE about the Brief note on Scheme of Arrangement between LG Balakrishnan & Bros Ltd & LGB Forge Ltd:

“LG Balakrishnan & Bros Ltd is a listed public Company presently engaged in the businesses of manufacturing of chains, rubber belts, steel forgings and related automotive comporients.

LGB Forge Ltd is an un-listed public Company incorporated for the purposes of carrying on businesses as manufacturers of forgings and castings.

The entire business of the LG Balakrishnan & Bros Ltd consists of many divisions. In order to provide greater focus to the business activities, it is proposed to demerge the Forging Division of LG Balakrishnan & Bros Ltd and transfer the Forging Division on a going concern basis to LGB Forge Ltd. As a result of the demerger, LGB Forge Ltd would focus on the Forging Division, leaving LG Balakrishnan & Bros Ltd to focus on the Remaining Business.

In consideration of the transfer of the Forging Division to LGB Forge Ltd and as per the
Scheme of Arrangement the Transferee Company (i.e. LGB Forge Ltd) will issue 1 (One)
Equity Share for every 1 (One) Equity share held by the existing shareholder of the Transferor Company (i.e LG Balakrishnan & Bros Ltd) as on the record date to be fixed by the Company.

The present Scheme of Arrangement is pursuant to Sections 391 & 394 and other relevant provisions of the Companies Act, 1956 and is in compliance with the norms laid down under Section 2 (19AA) of the Income Tax Act, 1961.

Note: The Shares to be issued by LGB Forge Ltd the resulting Company will be listed in the Stock Exchanges where in the Shares of LG Balakrishnan & Bros Ltd is listed as per SEBI DIP Guidelines.”