Kalpataru Limited has officially announced the withdrawal of its demerger scheme concerning Project Yoganand, located in Borivali, Mumbai. Initially approved by the Board of Directors on June 27, 2024, the scheme aimed to transfer the project to its wholly-owned subsidiary, Kalpataru Residency Private Limited. This decision was intended to create a Special Purpose Vehicle, facilitating easier funding and refinancing opportunities from investors and lenders. The appointed date for the demerger was slated for April 1, 2024, pending approval from the National Company Law Tribunal in Mumbai.

The recent decision to retract the demerger comes after a positive shift in the company's financial standing. Following an initial public offering (IPO), Kalpataru Limited has reported sufficient cash flows, negating the need for the demerger as lenders are no longer mandating it. The Board, after considering the recommendation of the Audit Committee, reached this conclusion in a meeting held on November 10, 2025. This strategic withdrawal reflects the company's strengthened financial position and aims to streamline its operational focus without the complexities of a demerger.

Importantly, the withdrawal of the demerger scheme will have no financial impact on either Kalpataru Limited or Kalpataru Residency Private Limited. The company reassured stakeholders that it remains committed to its growth trajectory and operational efficiency. This decision underscores a pragmatic approach to corporate restructuring, allowing the company to maintain its current strategic direction while maximizing its resources and capabilities in the competitive market.