Welspun Projects' amalgamation scheme takes effect

Welspun Projects today said that the scheme of amalgamation between the company and four other group entities has become effective from today.
"The High Court of Gujarat on April 23, 2015 sanctioned the Scheme of amalgamation and arrangement between Welspun Enterprises, Welspun Infratech, Welspun Plastics Private Limited, Welspun Infra Projects Private Limited and Welspun Projects Limited," the company said in a BSE filing.
Shareholders of Welspun Enterprises will get 12 shares of Welspun Projects for every share in Welspun Enterprises.
The consolidation will enable Welspun Enterprises, its subsidiaries and Welspun Projects to better leverage their strengths and target opportunities which need large free cash and strong balance sheet to put the resultant entity on an accelerated growth path.

The company had earlier said, the merger is aimed to consolidate and simplify corporate structure of Welspun Enterprises and its subsidiaries.
The elimination of multiple entities is expected to benefit in terms of superior capital structure, increased flexibility to allocate capital more efficiently, reduction in administrative, compliance cost and enhanced visibility of earnings and cash flows.