This Small-Cap Stock, engaged in manufacturing and supplying green chemicals, glycols, bio-based specialty chemicals, industrial gases, and other sustainable products, crashed 79.35 percent in today’s intraday trade. In this article, we will explore the reasons for the stock’s fall.
With a market capitalization of Rs. 1,617.36 crores, the share of India Glycols Limited has opened at a price of Rs. 229.85 per equity share, down nearly 79.35 percent from its previous day’s close price of Rs. 1,112.90. Since then, the stock has recovered and is currently trading at Rs. 241.30 per equity share.
Reason Behind the Crash:
India Glycols Limited has completed its demerger into three separate companies from September 1, 2026. The businesses will now operate independently, with each company focusing on a specific area. Existing shareholders will also receive shares in the newly separated businesses based on their holdings in India Glycols. The move is aimed at giving each business greater focus, better management oversight and more efficient use of capital.
India Glycols to Focus on Chemicals Business
India Glycols Limited will now operate as a separate company focused on its chemicals-related businesses. These include chemicals, glycols, bio-glycols, specialty products and industrial gases. The company reported revenue of Rs. 345 crore in the June 2026 quarter.
After the demerger, the company can give more attention to these businesses instead of managing different business segments under one structure. India Glycols will continue to be listed on the NSE and BSE. The focused structure may help the management make quicker business decisions, allocate capital more efficiently, and invest more specifically in areas where it sees growth opportunities.
IGL Spirits to Handle the Spirits Business
IGL Spirits Limited will separately manage India Glycols’ spirits and bio-fuel businesses. Its portfolio will include Indian Made Foreign Liquor (IMFL), country liquor and bio-fuels. The business recorded revenue of Rs. 694 crore in the June 2026 quarter, making it the largest of the three businesses by revenue.
IGL Spirits will apply for listing on both the NSE and BSE. As a separate company, its management can focus entirely on growing the spirits business and improving its operations. The demerger may also make it easier for the company to plan investments and use its financial resources according to the needs of its business.
Ennature Bio Pharma to Focus on Bio Businesses
Ennature Bio Pharma Limited will operate as a separate company focusing on bio-pharma and bio-polymers. The business reported revenue of Rs. 90 crore in the June 2026 quarter. The separate structure will allow the management to concentrate on developing these businesses and identifying new growth opportunities.
How the Shares Will Be Distributed?
As part of the demerger, existing shareholders of India Glycols Limited will receive shares in the two newly separated companies. For every 1 India Glycols share held on the September 2, 2026 record date, shareholders will receive 1 share of IGL Spirits Limited.
In addition, they will receive 1 share of Ennature Bio Pharma Limited for every 3 India Glycols shares held. This means shareholders will continue to hold their India Glycols shares while also receiving shares in the new companies.
For example, if an investor holds 300 India Glycols shares on the record date, they will receive 300 IGL Spirits shares and 100 Ennature Bio Pharma shares. So, after the demerger, the investor will hold 300 India Glycols shares + 300 IGL Spirits shares + 100 Ennature shares = 700 shares in total. IGL Spirits and Ennature Bio Pharma will apply for listing on the NSE and BSE.
Benefits of the Demerger
The demerger will separate India Glycols’ different businesses into three focused companies. This will allow each company to concentrate on its own area of business instead of managing multiple businesses under one company. With a clear focus, management can make decisions faster, improve operations and identify new growth opportunities. Shareholders will also get direct ownership in the newly separated businesses.
The separate companies can also manage their capital, investments and resources according to their individual needs. This may help each business use its money more efficiently and pursue its own expansion plans. The structure could also make it easier for investors to understand and evaluate the performance of the chemicals, spirits and bio-pharma businesses separately.
Revenue Mix and Manufacturing Presence:
India Glycols Limited has a strong manufacturing presence with three integrated facilities spread across around 360 acres. It also exports its products to more than 40 countries, highlighting its growing global reach. The company is ISCC PLUS certified, which supports its focus on sustainable and responsible production.
In FY26, the company’s revenue was generated from different business segments. Bio-Fuel contributed the highest share at 35 percent, followed by PS at 32 percent and BSPC at 28 percent. EB contributed the remaining 5 percent of the total revenue.
Company Overview:
India Glycols Limited (IGL) is a green chemicals manufacturing company that was founded in India in 1983. It concentrates on the manufacture of bio-based speciality and performance chemicals that include glycols, glycol ethers, natural gums, industrial gases and bio-polymers.
The company also engages in the manufacture of potable spirits, bio-fuels and nutraceuticals. IGL utilizes renewable agricultural feedstocks and green technology to develop environmentally friendly products. IGL’s products cater to industries such as pharmaceuticals, personal care, food and beverages, automotive, textile, paints and oil & gas.
Recent Quarter Results:
Looking at the company’s financial highlights, India Glycols Limited’s revenue has increased from Rs. 1,040 crore in Q1 FY26 to Rs. 1,130 crore in Q1 FY27, which has grown by 8.65 percent. The net profit has also grown by 32.88 percent from Rs. 73 crore in Q1 FY26 to Rs. 97 crore in Q1 FY27.
India Glycols Limited’s revenue and net profit have grown at a CAGR of 13 percent and 14 percent, respectively, over the last five years. In terms of return ratios, the company’s ROCE and ROE stand at 12.4 percent and 11.3 percent, respectively. India Glycols Limited has an earnings per share (EPS) of Rs. 48, and its debt-to-equity ratio is 0.58x.