NEW DELHI: The board of directors of Tips Industries has in-principal agreed to consider the demerger of the film division of the company into a separate entity.

A demerger committee formed by the board will appoint the valuer, merchant banker for fairness opinion and other intermediaries for this purpose. The board on receipt of the valuation report will study, discuss and initiate the next steps.

Following this announcement, the Kumar Taurani-led company’s stocks declined 1.2 per cent on the NSE.

Over the years, Tips’ film division has churned out many popular Bollywood flicks like all three instalments of the Race franchise, Coolie No.1 , Entertainment, Ambarasiya, and Kunwara, to name a few.

Tips Industries is extremely popular for its large library of music and has a strong forte in music promotion. It recently inked a global deal with Facebook, under which the social media giant has licensed its music for videos and other social experiences across Facebook and Instagram. With the move, Facebook and Instagram users will be able to add Tips' music catalogue to their posts and stories.