Kajaria Ceramics today said its board has approved the merger of Kajaria Securities Private Ltd, a promoter group entity, with the company.
In a filing to the BSE, the company said that the purpose of the merger is to "simplify the shareholding structure and reduction of shareholding tiers and to demonstrate the promoter Group's direct commitment to and engagement with KCL".
The board of directors considered and approved the scheme of arrangement between "Kajaria Ceramics (KCL) and Kajaria Securities Private Ltd (KSPL) and their respective shareholders and creditors", the filing said.
"KSPL is part of the Promoter Group of KCL. Pursuant to the proposed amalgamation of KSPL with KCL, there will be no dilution for any shareholders including public shareholders. The individual promoters will directly hold shares in KCL and there will be no change in the promoter shareholding of KCL".
Shares of Kajaria Ceramics closed 0.49 per cent down at Rs 1,220 on BSE.
