Electrosteel Castings updates on amalgamation of Srikalahasthi Pipes; stock ends lower

Final consent of NCLT, Cuttack Bench and NCLT, Amravati Bench sanctioning the proposed Scheme is pending which will be received shortly for completion of the Merger process, Electrosteel Castings added.

Sep 14, 2021 04:09 IST India Infoline News Service

Electrosteel Casting
The Board of Directors of Electrosteel Castings Limited (ECL) and Srikalahasthi Pipes Limited (SPL) at their respective Board Meetings held on 05th October 2020, approved the Draft Scheme of Amalgamation of SPL with ECL and their respective Shareholders & Creditors ('Scheme').

Mr Ashutosh Agarwal, Executive Director (Group Finance) and CFO of the Company, informed that the Competition Commission of India had accorded their approval to the aforesaid Scheme on 27th November 2020, as per the filing.

Both the Stock Exchanges, i.e., National Stock Exchange of India Limited and BSE Limited have issued their 'Observation Letter for Draft Scheme of Amalgamation of Srikalahasthi Pipes Limited and Electrosteel Castings Limited and their respective Shareholders & Creditors' dated 25th February 2021 to the respective applications filed by both the Companies, Electrosteel Castings said.

Pursuant to the Order of the National Company Law Tribunal ('NCLT'), Amravati Bench, Meetings of Equity Shareholders, Secured Creditors and Unsecured Creditors of SPL was held on 16th June 2021. The Equity Shareholders, Secured Creditors and Unsecured Creditors had approved the Scheme by way of requisite majority.

Pursuant to the Order of the NCLT, Cuttack Bench, Meetings of Equity Shareholders, Secured Creditors and Unsecured Creditors of ECL was held on 10th September 2021. The Equity Shareholders, Secured Creditors and Unsecured Creditors had approved the Scheme by way of requisite majority.

Final consent of NCLT, Cuttack Bench and NCLT, Amravati Bench sanctioning the proposed Scheme is pending which will be received shortly for completion of the Merger process, Electrosteel Castings added.

Electrosteel Steels Ltd ended at Rs31.05 down by Rs1.6 or 4.9% from its previous closing of Rs32.65 on the BSE.

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