Kamdhenu Ltd on Monday said its paints business has been demerged into a separate entity following an order of the Chandigarh bench of the National Company Law Tribunal (NCLT).

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Post demerger, Kamdhenu Ltd will continue to focus on steel business, while Kamdhenu Ventures Limited will expand the paints business.

It is now looking to complete the listing process of newly-formed company in the July-September quarter, Kamdhenu Ltd said in a statement.

NCLT, Chandigarh has approved the Scheme of Arrangements including demerger of paint business. The judgment will pave the way for listing of Kamdhenu Ventures Limited, the holding company for the paint business namely Kamdhenu Colour and Coatings Limited, by the next quarter on the BSE and NSE, it said.

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"Under the scheme, the company would be issuing one equity share having face value of Rs 5 each of Kamdhenu Ventures against every existing equity share having face value of Rs 10 each of Kamdhenu Ltd on a mirror shareholding basis," according to the statement.

As per the scheme, which was approved earlier this month, the ownership structure of Kamdhenu Ventures Ltd after listing will be precisely the same as that of Kamdhenu Limited.

"The decision to hive off the paint business is aimed to decouple the paint business. The paint industry in India has been witnessing around 18-20 per cent annualised growth, whereas the company is expecting to grow at a much faster rate at 30-40 per cent in the coming years in view of its wide presence and large network across the country," Kamdhenu Ltd chief financial officer Harish Kumar Agarwal said.

The company's paints business registered a growth of 19 per cent and clocked a revenue of Rs 241 crore in the fiscal year 2022.

Kamdhenu has its paints manufacturing plant in Chopanki (Rajasthan) where it manufactures interior and exterior emulsions, stainers, colourants, designer paints, construction chemicals, waterproofing chemicals and other water-based specialty products.

It also outsources median and low-range products like distempers, enamel and putty to other outside manufacturing entities in Rajasthan, Uttar Pradesh, Haryana and Punjab.