Image Source: The Hindu Business Line
Refex Industries Limited (RIL) has announced a major restructuring of its green mobility segment, signaling a strategic shift to enhance focus and unlock shareholder value in the evolving sustainable urban transport sector. The company’s board approved a composite scheme where its wholly owned subsidiary, Refex Green Mobility Limited (RGML), will first merge into RIL, followed by the demerger of the Green Mobility business into a new independent entity named Refex Mobility Limited (RML). This restructuring aims to create a specialized listed platform dedicated to green mobility solutions, allowing RIL to concentrate on its core Ash and Coal business while RML spearheads clean, technology-driven urban transportation initiatives.
Key Highlights of the Restructuring Plan:
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The merger of Refex Green Mobility Limited into Refex Industries will consolidate the green mobility business under RIL temporarily.
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Subsequent demerger will spin off the Green Mobility business into Refex Mobility Limited, which will be independently listed on both BSE and NSE.
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Shareholders of RIL will receive equity shares in RML proportionate to their existing holdings on a one-to-one basis, preserving their investment stake across entities.
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The Green Mobility business turnover stood at approximately Rs. 28.98 crore for the fiscal year ended March 31, 2025, contributing 1.18% to RIL’s overall post-merger turnover.
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Following the restructure, RIL will focus on ash and coal management, while RML will dedicate efforts towards sustainable mobility solutions including clean-fuel vehicles and related technologies.
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The shareholding pattern of RML will mirror that of RIL, with promoters holding about 56% and the public holding 44%.
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The scheme is subject to approvals from regulatory bodies such as the National Company Law Tribunal (NCLT), shareholders, creditors, and other authorities.
Strategic Implications:
By creating an independent, focused company for its green mobility business, Refex Industries seeks to sharpen management focus and unlock hidden value for shareholders through greater market visibility and targeted capital market access. This move is expected to attract different investors and strategic partners aligned with the distinct risk and growth profile of each business segment. It also reinforces Refex’s commitment to sustainable technology-driven urban transport solutions at a time when the green mobility sector in India is gaining substantial momentum.
Market Reaction and Outlook:
On September 22, 2025, Refex Industries shares closed at Rs. 339, down 2.49% from the previous day’s close, reflecting market cautiousness ahead of the restructuring execution. Investors will closely watch the listing of Refex Mobility Limited and its operational progress in clean urban transportation. The strategic reorganization positions Refex to better capture growth opportunities in both traditional industrial and emerging green mobility sectors, enhancing long-term shareholder value.
Source: The Hindu Business Line, ScanX Trade, BSE Filings
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