Shares of Forbes Inc rose 5% for a second day on September 28 after the firm announced the demerger of its precision tools business on Monday.

The new entity, Forbes Precision Tool and Machine Parts Ltd (FPTL) will be spun off from Forbes, the company said in a regulatory filing. The scheme of arrangement involves no cash consideration and will make the demerger effective.

Forbes said the paid-up capital of Rs 10 per share should be issued to shareholders of the merged company (Forbes & Co) with paid-up capital of Rs 10 in four shares. As of the registration date, they each held 10-person companies in the demerger.

Forbes & Co will not have any shareholding changes as a result of the demerger. It added that for the financial year that ended March 31, 2022, Forbes’ precision tools business recorded a turnover of Rs 179.22 crore or 76.25% of the company’s total turnover.

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Following the demerger, Forbes will continue to directly engage in industrial automation, coding and medical device businesses, real estate, investments in subsidiaries, joint ventures and associates. Shares of the company rose 5% to Rs 766.05 in BSE trading. It has risen more than 10% in the past two days.