Jindal Poly Films Ltd (JFPL) has decided to voluntarily withdraw its application related to the demerger of non-woven fabrics business division into its subsidiary with Global Nonwovens Ltd in view of procedural and regulatory delays along with geopolitical uncertainties.
Withdrawal limited to regulatory filing
The company clarified that the withdrawal pertains only to the application filed with stock exchanges seeking no-objection/observation letters under Regulation 37 of the SEBI Listing Regulations.
The scheme had not been filed before the National Company Law Tribunal (NCLT), and therefore no judicial or tribunal proceedings are pending in this regard.
No financial impact
JFPL stated that the decision does not have any impact on its financial position or results. The company also confirmed that no monetary penalty has been imposed and no financial implications are expected from the withdrawal.
Board decision amid uncertainties
The withdrawal was approved by the Board of Directors, taking into account procedural delays, evolving market conditions and geopolitical instability.
The company noted that the time, cost and regulatory requirements associated with pursuing the scheme, along with delays in implementation, made it prudent to withdraw the proposal in the interest of stakeholders.
Outlook
The move reflects a cautious approach by the company amid an uncertain business environment, while retaining flexibility to reassess strategic options in the future.
Earlier demerger rationale
On August 14, 2025, JFPL made the announcement regarding the proposed demerger involving GNL was aimed at enabling focused growth and expansion of the non-woven segment as a separate entity. It was expected to be completed with 9-12 months.
The restructuring would have involved the transfer of assets worth around ₹1,500 crore along with outstanding debt of approximately ₹650 crore.
Limited impact on risk profile
At the time of announcement, the company had indicated that the move would have a limited impact on its business risk profile, as GNL contributed about 13% of revenue as of March 31, 2025.
The demerger was also not expected to materially affect JPFL’s financial risk profile, with liquidity of around ₹4,000 crore to remain within the existing entity, while consolidated debt was projected to decline post-demerger.
Background of acquisition
JPFL had acquired a 60.45% stake in GNL in February 2014 and subsequently increased its holding to 100% in FY17.
GNL operates a manufacturing facility in Nashik with a capacity of 58,000 tonnes per annum (TPA) of nonwoven products catering to hygiene and medical applications, supported by a well-established customer base.
Strategic recalibration
The withdrawal of the demerger plan reflects a strategic recalibration by the company amid procedural delays, regulatory challenges and evolving market conditions, even as the original proposal was designed to unlock value and streamline operations.