Torrent Power Board on Tuesday approved an amalgamation of Torrent Energy, a wholly owned subsidiary of the company and Torrent Cables with itself.
“A composite scheme of amalgamation between Torrent Energy Limited (TEL), a wholly owned subsidiary of the company, and Torrent Cables Limited (TCL) with the company (Scheme) was recommended by the Audit Committee and approved by the Board of Directors of the Company,” Torrent Power said in a statement.
The appointed date of the scheme would be April 1, 2014. All assets and liabilities of TEL and TCL are to be transferred and vested in the Torrent Power, that will issue its shares to the shareholders of TCL, based on the share exchange ratio determined by the valuer.
Every equity shareholder holding 20 fully paid shares of Rs 10 each of Torrent Cables, shall be entitled to receive 19 fully paid up equity shares of Rs 10 each of Torrent Power.
The scheme is conditional upon regulatory approvals including that of Gujarat Electricity Regulatory Commission, Central Electricity Regulatory Commission, SEBI, Stock Exchanges, and Hon'ble High Court of Gujarat / National Company Law Tribunal.
Meanwhile, Torrent Power has posted a net profit of Rs 172.85 crore for the quarter ended March 31, 2014 as compared to Rs 24.5 crore in the corresponding quarter last fiscal, up around seven times. Total Income has increased from Rs 1983 crore for the quarter ended March 31, 2013 to Rs. 2251.9 crore for the quarter ended March 31, 2014.
For the full year, the company posted a net profit of Rs 94.8 for the year ended March 31, 2014 as compared to Rs 384.9 crore for the year ended March 31, 2013. Total Income has increased from Rs 8,269.9 crore for the year ended March 31, 2013 to Rs 8817.4 crore in FY14.