What is the structure of the new cement company? What will be the equity base?
We have not decided on that yet. It may not be the same as L&Ts equity base. For a new company, there is no restriction as regards the equity. But L&T engineering will have to write off capital. Can you elaborate on how the whole process of the demerger will take place? In the first stage, L&T will demerge its cement business through a scheme of arrangement. L&T will retain 20 per cent of the equity in Cemco – the new entity, and the balance will be distributed to shareholders in proportion to their shareholding in L&T. In the next stage, Grasim buys 8.5 per cent from L&T and will announce an open offer for another 30 per cent. Our effort would be to keep a minimum time gap as per the statutory requirements. Grasim will adhere to strict corporate governance norms in this regard and will immediately announce the open offer, even before the new company gets listed on the stock exchanges. Will the sale of 8.5 per cent stake by L&T in the new cement company, and the 15.5 per cent stake sal
