Refex Industries (NSE:REFEX, BOM:532884) board has approved a composite scheme of amalgamation and arrangement to reorganize its green mobility business, according to a Monday filing.

Shares of the company surged nearly 16% at market close on Tuesday.

Under the plan, Refex Green Mobility, a wholly owned subsidiary, will be merged into the parent company. Subsequently, the green mobility unit will be demerged into a newly incorporated entity, Refex Mobility Ltd (RML), the filing said.

RML is proposed to be listed independently on the NSE and BSE, creating two distinct businesses.

Refex Industries will continue to focus on ash and coal handling, while RML will operate as a pure-play platform for sustainable mobility using clean-fuel vehicles.

Shareholders of Refex Industries will receive equity shares in RML in the same ratio as their current holding in Refex Industries, resulting in a mirror shareholding structure.

The restructuring remains subject to necessary approvals.