Chemicals manufacturer Indo Amines said Thursday its board has approved the proposed merger of Core Chemicals (Mumbai) Pvt Ltd (CCMPL) with its wholly-owned subsidiary Key Organics Pvt Ltd.
Core Chemicals is another Mumbai-headquartered chemical manufacturer. The merger will be subject to the approval of the National Company Law Tribunal (NCLT) and does not involve involve any cash consideration, it said in a BSE filing.
The shareholders of CCMPL will be issued 50 shares of Rs 10 each of Indo Amines for every share held in CCMPL, it said.
There will be no allotment of equity shares of Indo Amines to the shareholders of Key Organics Pvt Ltd since it is the wholly-owned subsidiary of Indo Amines, it added.
After completion of the merger, promoter's shareholding in the Indo Amines is expected to reduce to 70.06 per cent on a post amalgamation shareholding pattern from 74.26 per cent held earlier.
Commenting on the merger scheme, Indo Amine Director and CEO Vijay Palkar said: "The amalgamation will strengthen our position, significantly expand our product offerings and sales platform to access a much larger client base and allow for a pooling of resources and know-how."
He further said that the merger will act as a strong platform from which the company can embark on the next phase of growth and unlock significant value for the shareholders.
The shares of the company rose 0.78 per cent to settle at Rs 116.25 a piece on the BSE today.
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