IndiaRetailBiz

The proposed demerger of the retail business of S Kumar Nationwide (SKNL) into a new entity to be called Brandhouse Retail Ltd appears to have run into troubles due to family feud between different branches of its owner Kasliwal family.

Kasliwals through demerger were looking at increasing their focus on retail besides unlocking the value of the emerging retail business which has a high potential for growth.

The dermerger, as per a DNA Money report, is being opposed by Alok Kumar Kasliwal (half brother of its Chairman Shambhu Kumar Kasliwal) as his faction’s share in the demerged business will become lower than than as at present, thus, robbing of his current status of minority shareholder in the non-demerged company.

Aspi Bhesania, of Aspi Bhesania and Co, a cost accountancy firm has also echoed similar sentiments as according to him the promoter group is actually trying to increase its control over the new company through the demerger. This according to him is being done at the cost of the interests of shareholders.

In the proposed scheme of demerger, every shareholder will get one share of Brandhouse Retail foer every five shares of SKNL held. Post demerger, promoter’s stake will go up from 44.50% (in SKNL) to 56.87% in the new company.