Campus Activewear gets NCLT approval to merge wholly-owned subsidiary; stock dips ~3%

26 Sep 2022 , 09:22 AM

Campus Activewear Limited, one of India’s largest omnichannel sports and athleisure footwear brands, has announced that the National Company Law Tribunal, New Delhi (NCLT) has approved the merger of its wholly-owned subsidiary Campus AI Private Limited with the Company in an order dated August 11, 2022.

The merger of its wholly owned subsidiary has no effect on the consolidated entity’s revenue or EBIDTA.

H.K. Agarwal, Chairman & Managing Director, commented on the transaction, saying, “Campus Activewear is expected to benefit from the combination, matching the management’s aim for building shareholder value.”

“It improves overall company capabilities by introducing cost optimization, economies of scale, a streamlined corporate structure, and simplifying business activities. Campus Activewear strives to be a part of every Indian’s life and continues to provide unique footwear experiences in the sports and athleisure segments, helping to raise India’s fitness quotient,” he added.

At around 9.24 AM, Campus Activewear was trading 2.54% down at Rs582.40, against previous close of Rs597.55 on NSE. So far, it touched intraday high and low of Rs595.40 and Rs570.20 respectively.

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