Aditya Birla Capital's 2 firms apply to NCLT for merger

Aditya Birla Capital Ltd (ABCL) said today that two of its units are in the process of merging and they will file application before the Allahabad bench of NCLT for integration.

In a regulatory filing, ABCL said: "Aditya Birla Money Limited (ABML), subsidiary of the company and Aditya Birla Commodities Broking Limited (ABCBL), a step-down subsidiary of the company (and wholly owned subsidiary of ABML) are in the process of filing applications before the National Company Law Tribunal, Ahmedabad Bench, for approval of a Scheme of Amalgamation for the merger of ABCBL into ABML.".

ABCL said that post the merger of Forward Markets Commission (FMC) with SEBI, its move will enable integration of both the security and commodity broking into a single entity thereby facilitating ease of doing business.

"The scheme would consolidate the investments within the transferee company (ABML) to simplify the complexity of the corporate structure and eliminate the duplication in administrative cost and multiple record-keeping, achieve operational efficiency and thus resulting in cost savings," it said in a regulatory filing.

The authorised share capital of ABCBL was at Rs 7 crore as on December 2017 while that of ABML was at Rs 25 crore.

The ABCL stock closed 1.57 per cent lower at Rs 147.45 on BSE, while ABML closed marginally up at Rs 61.85 on BSE.