Pennar Industries gets NCLT nod to merge group companies

: Pennar Industries Limited (PIL), a value-added engineering products and solutions company Thursday announced that it has received approval from National Company Law Tribunal (NCLT) to merge its subsidiaries Pennar Engineered Building Systems Limited and Pennar Enviro Limited with itself.

As per the approved scheme, shareholders of PEBS will get 23 shares of Pennar Industries for 13 shares held and shareholders of Pennar Enviro will get one share of Pennar Industries for every one share held, a press release said.

The NCLT has approved the appointed date of the scheme (effective date) to be April 1, 2018, it said.

K M Sunil, Vice President - Corporate Strategy, said the merger is expected to create a leaner group structure, result in better synergies and optimisation of costs and improved fund utilisation.

"It will also result in PIL having a better capital structure, pooled resources and synchronised growth plans. This will eventually lead to focused growth, higher profitability and shareholder value creation, Sunil said.

The whole process after the approval from NCLT will take around two to three months to get the new shares (as per the swap ratio) traded on the Exchange Platform.

Further trading in PEBS will be suspended after the record date to be fixed by the Board of Directors at their board meeting.

The record date will be intimated in due course, it added.

Pennar Industries shares closed at Rs 31.35 apiece on the BSE down 1.72 per cent over previous close while PEBS was down by 4.41 per cent.