Kolkata: Jayshree Chemicals Ltd said on Monday its board has approved the merger of its wholly-owned subsidiary Fort Gloster Electric Ltd with Jayshree Chemicals.

According to a stock exchange disclosure, the S.K. Bangur promoted-company said there would be no cash consideration or issue of shares.

Fort Gloster, which was incorporated in 1993, is engaged in the business of trading in electrical goods and appliances.

In the disclosure, Jayshree said the rationale behind the merger was to consolidate the business and achieve synergies in market share, obtain economies of scale, avoid and eliminate unnecessary costs, duplication of costs of administration. The scheme will enable the parent company to “increase its business by venturing into new segments and to function in more efficient manner".

The amalgamation will help Jayshree Chemicals streamline its business, the stock exchange notification said. The scheme will be “beneficial" for both companies while the “real value of shares will increase," the notification said.

Post merger, there will be no change in the shareholding pattern of Jayshree Chemicals. Currently promoter S.K. Bangur and his family hold a 47.36% stake in Jayshree Chemicals.

Shares of the company on Monday closed at Rs15.40 per scrip on the BSE, up 1.65% from the previous close.