Kolkata, Oct 23 (PTI) Shyam Sel and Power Ltd, a wholly-owned subsidiary of Shyam Metalics and Energy Ltd, has received approval from the National Company Law Tribunal (NCLT), Kolkata Bench, for the merger of Shree Venkateshwara Electrocast Pvt Ltd with effect from April 1, 2024, the company said on Friday.
The tribunal approved the scheme of amalgamation through an order dated October 16, 2026, Shyam Metalics said in a statement.
The merger aims to consolidate aluminium foil operations under a single entity, streamline manufacturing and marketing activities, and improve operational efficiency and working capital management.
As Shree Venkateshwara Electrocast is already a wholly-owned subsidiary of Shyam Sel and Power, no fresh equity shares will be issued under the scheme.
Its existing share capital will be cancelled upon implementation of the merger.
All assets, liabilities, contracts and employees of Shree Venkateshwara Electrocast will vest in Shyam Sel and Power, while the former will be dissolved without winding up after the certified copy of the tribunal’s order is filed with the Registrar of Companies, West Bengal.
The merger is also expected to provide tax benefits by allowing Shyam Sel and Power, subject to applicable statutory conditions, to set off eligible accumulated business losses and unabsorbed depreciation of the merging entity under Section 72A of the Income-tax Act, 1961. PTI BSM MNB
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