Minority shareholders challenge India Cements merger plan at NCLAT

Delhi-based Aggarwals who own shares in subsidiary Trinetra cements have alleged undervaluation

Minority shareholders of Trinetra Cements, a subsidiary of Chennai-based Cements major India Cements, have moved the National Company Law Appellate Tribunal(NCLAT), challenging the plan to merge the two companies. 

Delhi-based Arvind Aggarwal and Ritu Aggarwal, who own around 2.4 per cent shares in Rajasthan-based Trinetra, have alleged various deficiencies in the merger scheme sanctioned by the  Chennai bench of National Company Law Tribunal(NCLT) in April. 

The petitioners argue that the share exchange ratio of 2:9 was incorrect since it undervalued Trinetra Cements by about Rs 500 crore. 

They have also alleged that the NCLT did not give due consideration to the objections raised