Minda Corporation received NCLT order for merging of five domestic wholly owned subsidiary companies

Minda Corporation received NCLT order for merging of five domestic wholly ownedsubsidiary companies

 

 

Minda Corporation Limited (referred to as “Minda Corp” or the “Company, the flagship company of Spark Minda Group, today announced that the Hon’ble National Company Law Tribunal, New Delhi Bench (“NCLT”), has approved the scheme of amalgamation of five domestic Indian

wholly owned subsidiary companies i.e. Minda Management Services Limited, Minda SAI Limited, Minda Automotive Solutions Limited, Minda Autoelektrik Limited & Minda Telematics and Electric Mobility Solutions Private Limited (“Transferor Companies”) into Minda Corp.

Rationale for the amalgamation/ merger:

Amalgamation of the Transferor Companies into and with the Minda Corp shall result in  consolidation of the businesses. The Amalgamation is expected to be beneficial as it would create greater synergies among the businesses and would enable them to have access to wider financial resources, increase the managerial efficiencies, lowering of cost structure and higher transparency.

All assets and liabilities of the transferor companies shall be transferred to Minda Corp at book value as on the designated Appointed Date of April 01, 2018. Post-merger, the revenue size of the standalone entity has more than doubled. Based on FY 2019, the post-merger revenue of the standalone entity has increased to appox.Rs. 23,700 million as compared to revenue of Rs.11,330 million.

The Transferor Companies are wholly owned subsidiary companies of Minda Corp, therefore no new equity shares shall require to be issued and the entire share capital of the Transferor Companies shall be cancelled and extinguished. Thus the merger is equity neutral.

Commenting on the merger, Mr. Ashok Minda, Chairman and Group CEO said:

“Merger would result in simplification of corporate structure and a larger standalone entity.
This will bring better governance, accountability and efficiency in the system. This move will
lead to cost optimization, efficient treasury management and better value proposition to all
the stakeholders.”

Jindal Stainless Limited reports Q1 PAT at Rs 67 crore

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