Kalpataru Limited has announced the withdrawal of its demerger scheme, initially slated to take effect on April 1, 2024. This decision came during the Board of Directors' meeting held on November 10, 2025, where they evaluated the necessity of the scheme which was designed to transfer a specific project, Project Yoganand, from Kalpataru Limited to its wholly-owned subsidiary, Kalpataru Residency Private Limited. The demerger aimed to create a Special Purpose Vehicle to attract funding and refinancing from potential investors.

The scheme was first approved on June 27, 2024, under the provisions of the Companies Act, 2013, but recent developments have led to a change in strategy. Following an initial public offering of equity shares, Kalpataru Limited reported sufficient cash flows, and lenders for Project Yoganand have indicated that a demerger is no longer a requirement. With this shift in financial circumstances, the Board, guided by the Audit Committee's recommendation, decided to retract the demerger proposal, recognizing it as an unnecessary measure at this time.

The company stated that the withdrawal of the scheme will not have any financial impact on either Kalpataru Limited or Kalpataru Residency Private Limited. This move reflects a strategic pivot for the company, allowing it to maintain operational control over its projects while ensuring financial stability and flexibility moving forward. Investors and stakeholders have been advised that this information is also available on the company's official website, reinforcing Kalpataru Limited's commitment to transparency and regulatory compliance.