Sangam's merger with SPBL approved

The shareholders and creditors of the Rajasthan-based Sangam (India) Ltd have approved the scheme of amalgamation with the SPBL Ltd, in a meeting held recently in Bhilwara, Rajasthan.

The meeting was held to consider the proposal of amalgamation of the SPBL with the company, pursuant to the order of the High Court of Rajasthan, Jodhpur. The Sangam (India) Ltd is one of the largest polyester-viscose dyed yarn manufacturers in India.

The board of directors of Sangam (India) has approved the swap ratio of 1:4, that is, one share of Sangam (India) for every four shares of SPBL Ltd.

Post merger, Sangam (India) Ltd's issued and paid-up equity shares will increase from Rs 34.40 crore to Rs 39.42 crore

Explaining the rationale behind the merger, R P Soni, Chairman, Sangam (India), said: "The merger of SPBL is part of our business synergy and should improve our operating margins by 200-300 basis points for fabric division Further, the merger will give us an additional flock base home furnishing product with well-established Laurel brand."

He added, "SPBL's inherent operational strengths will contribute to the profits of SIL by enabling more efficient use of resources, thereby, further enhancing overall shareholder value."