Pennar Industries Limited
(PIL), a leading value-added engineering products and solutions company announced that it has received approval from National Company Law Tribunal (NCLT) to merge its subsidiaries Pennar Engineered Building Systems Limited (PEBS Pennar) and Pennar Enviro Limited (PEL) with itself.
As per the approved scheme, shareholders of PEBS Pennar will get 23 shares of Pennar Industries for 13 shares held and shareholders of Pennar Enviro will get one share of Pennar Industries for every one share held. The NCLT approval has approved the appointed date of the scheme (effective date) to be April 1, 2018.
Commenting on the approval, K M Sunil, Vice President - Corporate Strategy said, “The merger is expected to create a leaner group structure, result in better synergies and optimisation of costs and improved fund utilisation. It will also result in PIL having a better capital structure, pooled resources and synchronised growth plans. This will eventually lead to focused growth, higher profitability and shareholder value creation.”
The whole process after the approval from NCLT takes around two to three months to get the new shares (as per the swap ratio) traded on the Exchange Platform. Further trading in PEBS will be suspended after the Record Date to be fixed by the Board of Directors at their Board Meeting. The record date will be intimated in due course.