NCLT Approves NBFCs Merger Scheme and Parent Company of Aditya Birla Group
The consolidation will utilize the capital for business development and growth of companies under a single entity
NCLT Approves NBFCs Merger Scheme and Parent Company of Aditya Birla Group
The consolidation will utilize the capital for business development and growth of companies under a single entity
The Mumbai bench of the National Company Law Tribunal (NCLT) has approved the merger scheme between six non-banking financial corporations (NBFCs) and the parent company of the Aditya Birla Group companies.
A Coram of Reeta Kohli (judicial member) and Madhu Sinha (technical member) recently passed an order approving the merger.
The order read, "From the material on record, the scheme appears to be fair and reasonable and is not violative of any provisions of the law and is not contrary to public policy. Since all the requisite statutory compliances have been fulfilled, the company scheme petition is made absolute in terms of the prayers mentioned in the petition.”
The six NBFCs had approached the NCLT for the merger. These include the NBFCs which shall continue to be the core business. The other companies are Birla TMT Holdings, Infocyber India and Sunbeam Trading & Investments.
The scheme provides for the amalgamation of the transferor companies with the transferee companies. The group had desired to simplify its organizational structure and reduce the number of companies within the group.
The counsel for the Birla Group Holdings remarked, "The merger scheme will allow appropriate consolidation of the undertakings of the transferor companies and the transferee company. It will result in the formation of a larger company having greater capacity to raise and access funds for its business and conducting trade on more favorable terms.”