Hindustan Dorr-Oliver (HDO), part of the IVRCL group with interests in multiple engineering solutions, including industrial sectors such as mineral, metals, water management, fertilisers and cement, is mulling to demerge its manufacturing division into HDO Technologies. Further, the company's hive-off proposal is apparently to embark on a joint venture with a foreign partner to manufacture high-end equipment mainly for nuclear power, mining and petrochemical sectors.
At present, HDO has manufacturing and fabrication facilities at Ahmedabad in Gujarat and Sheffield in the UK. It intends to set up a third production facility near Pune in collaboration with an international company for establishing a leadership position in manufacturing in the global market.
Meanwhile, a court-convened meeting is being held on March 30 to get shareholder's approval for the demerger resolution. However, the company has not undertaken any valuation from an independent valuer nor sought a fairness opinion, as is the norm for corporate restructuring of this nature.
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