Vardhman Textiles board approves amalgamation of two subsidiaries

The merger deal is subject to the NCLT approval.

May 28, 2020 04:05 IST India Infoline News Service

The Vardhman Textiles board has approved amalgamation of VMT Spinning and Vardhman Nisshinbo Garments within its ambit. The merger deal is subject to the NCLT approval. VMT is a wholly-owned subsidiary of Vardhman Nisshinbo Garments.

The amalgamation of the companies mentioned in Vardhman Textiles is seen to provide substantial impetus to growth, enable synergies, reduce operational costs, increase operational efficiencies and enable optimal utilization of various resources as a result of pooling of financial, managerial and technical resources.

The scheme will also involve respective shareholders and creditors to become part of Vardhman Textiles. However, there will be no change in the shareholding pattern of Vardhman Nisshinbo.

VMT Spinning is engaged in the business of manufacturing cotton and blended yarn. While Vardhman Nisshinbo operates in the business of manufacturing and sale of garments (mainly shirts).

Post announcement, Vardhman Textiles share price ended at Rs639.60 per piece on BSE, up 2.12%.

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