APL Apollo board nods amalgamation scheme of Shri Lakshmi and Apollo Tricoat

APL Apollo on Saturday approved a draft scheme of amalgamation of Shri Lakshmi Metal Udyog Limited and Apollo Tricoat Tubes.

Mar 01, 2021 10:03 IST India Infoline News Service

APL Apollo Tubes Limited board of directors have approved a draft scheme of amalgamation of Shri Lakshmi Metal Udyog Limited and Apollo Tricoat Tubes Limited with the company and their respective shareholders and creditors.

APL Apollo Tubes and Apollo Tricot stocks were bullish in early deals on Monday. APL Apollo stock hit a fresh Rs1,124.95 per piece. The stock dipped later and at around 10.40 am, it was trading at Rs1066.00 down Rs4.30 or 0.40%. 
Apollo Tricot also hit new 52-week high of Rs1020 per piece in aearly trade on Monday. It was trading at Rs989.00 up Rs64.75 or 7.01%. 

“The Scheme is subject to receipt of approvals from the shareholders and creditors of the company as may be directed by the National Company Law Tribunal, Delhi bench (NCLT), BSE Limited, National Stock Exchange of India Limited and approval of other regulatory or statutory authorities as may be required,” company said in a regulatory filing.

APL Apollo is engaged in the business of production of ERW steel tubes. Shri Lakshmi is engaged in the business of production of ERW steel tubes and GP Coils. Apollo Tricoat is engaged in the business of production of ERW steel tubes.

Apollo Tricoat’s minority shareholders will receive one equity share in APL Apollo for each equity share held in Apollo Tricoat. This implies a premium of 16% to the previous closing price for Apollo Tricoat’s shareholders. The merger will result in an increase of 10.8 per cent in APL Apollo’s share capital.

This transaction is subject to shareholder approval each of APL Apollo and Apollo Tricoat, as well as regulatory approvals. This transaction is expected to close in Q3FY22 with the appointed date of merger being April 1, 2021.

The amalgamation shall result in consolidation of the respective operations served by one platform thereby leveraging the capability of APL Apollo, the company said.

As the entire, issued, subscribed and paid up share capital of Shri Lakshmi is held by APL Apollo and its nominees, upon the Scheme being effective, notwithstanding anything contrary in this Scheme, the said Equity Share Capital of Shri Lakshmi shall stand automatically cancelled and there will be no issue and allotment of shares to APL Apollo or the nominees as APL Apollo and its nominees are the only shareholders of Shri Lakshmi, company said.

Related Story

Open Free Demat Account (Rs699)