Shares of Lux Industries, with 112% returns in April, are set to be impacted by the news of proposed demerger announced on Thursday. The midcap stock closed 10% higher at Rs 1756.40 in the previous session amid buzz of a possible demerger. Market cap of the firm stood at Rs 5,281.79 crore. 

The communication to bourses announcing demerger was made after market hours at 9:06 pm. 
The innerware company, which has a high promoter and promoter group shareholding of 74.19% in March 2026 quarter, approved an in-principle demerger scheme following a Family Settlement Agreement among Todi family promoter groups. 

The restructuring will split the business into three verticals, with two new listed entities and brand licensing arrangements to ensure operational continuity. The board also approved incorporating two wholly owned subsidiaries with Rs 5,00,000 share capital each to facilitate the demerger process.

The three verticals are named Vertical A, Vertical B and Vertical C. 

Vertical A will be demerged into a new listed company led by chairman Ashok Kumar Todi or another AKT Family member. 

Vertical B will remain with Lux Industries Limited under PKT Family leadership through MD Pradip Kumar Todi.

Vertical C will form another new listed entity managed by Executive Director Navin Kumar Todi or a KKT Family representative.

A panel including Chairman Ashok Kumar Todi, Managing Director Pradip Kumar Todi, and Independent Directors Ratnabali Kakkar and Rusha Mitra has been formed to deliberate upon proposed demerger. The implementation of the demerger needs approvals from regulatory authorities, shareholders, and other stakeholders.