Minda Corporation gets NCLT approval for scheme of amalgamation

Minda Corporation announced that 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, Minda SAI, Minda Automotive Solutions, Minda Autoelektrik & Minda Telematics and Electric Mobility Solutions (Transferor Companies) into Minda Corp.

Amalgamation of the Transferor Companies into and with the Minda Corporation 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 Corporation at book value as on the designated Appointed Date of 01 April 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. 2370 crore as compared to revenue of Rs.1133 crore.

The Transferor Companies are wholly owned subsidiary companies of Minda Corporation, 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.

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