Shares of Lux Industries Ltd. dropped over 7% to a low of ₹1,616 on the National Stock Exchange (NSE) after the company announced a proposed three-way demerger. The board granted in-principle approval for the demerger following a family settlement agreement among the Todi family, who are the promoters. The demerger will split the business into three verticals: Vertical A, which includes brands like Lux Cozi and ONN; Vertical B, which will remain within Lux Industries; and Vertical C, which includes brands such as Lux Classic and GenX. The Todi family will continue to manage Vertical B, while the other two verticals will be led by different family members. Additionally, new brand licensing agreements have been executed to safeguard the company’s rights concerning its brands, while the principal LUX trademark will remain licensed to Lux Industries and the new entities. The board also approved the incorporation of two wholly owned subsidiaries in West Bengal.