Kirloskar Brothers Investments Limited (KBIL) was incorporated on April 16, 2009 as a wholly owned subsidiary of Kirloskar Brothers Limited (KBL) as an Investment Company and for the purpose of transfer and vesting of certain Investments of KBL, on going concern basis, pursuant to the Scheme of Arrangement.
The Hon’ble High Court of Judicature at Bombay vide its order dated January 22, 2010 sanctioned the Scheme of Arrangement between Kirloskar Brothers Limited, Kirloskar Brothers Investments Limited and their respective shareholders.
Pursuant to the Scheme becoming effective, every shareholder of KBL holding say 20 (Twenty) equity shares of KBL as on Record Date was issued 15 (Fifteen) new equity shares of Rs. 2/- (Rupees two only) each of KBL after capital reduction and issued and allotted 1 (One) equity share of Rs. 10/- (Rupees ten only) of KBIL as fully paid up.
At present, the authorised share capital of KBIL is Rs. 14,00,00,000/- (Rupees fourteen crores only) divided into 1,40,00,000 (One crore fourty lakhs) equity shares of Rs. 10/- (Rupees ten only) each. The paid up share capital of the company increased to Rs. 5,28,87,180 (Rupees five crores twenty eight lakhs eighty seven thousand one hundred and eighty only) pursuant to the Scheme of Arrangement.
As a part of the Scheme, the Company received Listing / In-principle Approval from Bombay Stock Exchange Limited (BSE) and National Stock Exchange of India Limited (NSE) on 16 June 2010 and 18 June 2010 respectively for listing of equity shares of the Company.
Subsequently, Securities and Exchange Board of India (SEBI) has vide its letter dated 16 December 2010 granted necessary relaxation from the strict enforcement of Rule 19(2)(b) of Securities Contracts (Regulation) Rules, 1957 to the Company. Consequently, trading in the equity shares of the Company commenced with effect from 4 January 2011 at BSE and NSE.