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Business News/ Markets / Stock Markets/  Pritika Auto Industries demerger: NCLT gives approval for value unlocking. Details here

Pritika Auto Industries demerger: NCLT gives approval for value unlocking. Details here

Pritika Auto Industries demerger: Eligible shareholders of PAIL will be awarded 10 shares of PIL for every 63 shares of the parent company

Chandigarh bench of the NCLT has given its approval for scheme of arrangement between PAIL and PIL. (Photo: iStock)Premium
Chandigarh bench of the NCLT has given its approval for scheme of arrangement between PAIL and PIL. (Photo: iStock)

Pritika Auto Industries demerger: The National Company Law Tribunal (NCLT) hs granted its approval to the schemd of arrangement between Pritika Industries Limited (PIL) and Pritika Auto Industries Limited (PAIL) for demerger of its automotive, tractor and engineering component business. 

The Chandigarh bench of the NCLT gave its nodd via order dated 4th December 2023. The demerged company after the implementatioin of demerger would be Pritika Industries Limited.

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Pritika Auto Industries demerger details

Pritika Auto Industries Limited informed Indian stock market exchanges about the NCLT approval citing, "We are pleased to inform you that the Chandigarh Bench of the Hon'ble National Company Law Tribunal (NCLT) vide its Order dated 4k December, 2023 has granted approval for the Scheme of Arrangement between Pritika Industries Limited (PIL) (Demerged Company) and Pritika Auto Industries Limited (PAIL) (the Resulting Company) and their respective shareholders ("Scheme"), under Sections 230 to 232 of Companies Act, 2013 for Demerger of the Demerged Undertaking ie. “ Automotive/Tractor/ Engineering Components Business Undertaking" of PRITIKA INDUSTRIES LIMITED (“the Demerged Company") into PRITIKA AUTO INDUSTRIES LIMITED (“the Resulting Company’)."

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Share swap ratio

On Pritika Auto Industries demerger demerger ratio, the auto company said, "Upon the Scheme coming into effect, in consideration of the transfer of the Demerged Undertaking by the Demerged Company (PIL) to the Resulting Company (PAIL), in terms of this Scheme, the Resulting Company (PAIL) shall, without any further act or deed, issue and allot to every member of the Demerged Company (PIL) holding fully paid up equity shares in the Demerged Company (PIL) and whose names appear in the Register of Members of the Demerged Company (PIL) on the Demerger Record Date in respect of every 10 (Ten) Equity Shares of the face value of Rs. 10/- (Rupees Ten) each fully paid up held by him / her / it in the Demerged Company (PIL), 63 (Sixty-Three) new Equity shares of the Resulting Company (PAIL) of the face value of Rs.2/- (Rupees Two) each fully paid up."

So, Pritika Auto Industries shareholders holding the stock on record date would be awarded 10 Pritika Industries shares for every 63 shares of PAIL.

The auto company is yet to declare Pritika Auto Industries demerger record date.

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Asit Manohar
Chief Content Producer at Live Mint Digital Team
Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Check all the latest action on Budget 2024 here. Download The Mint News App to get Daily Market Updates.
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Published: 06 Dec 2023, 08:50 AM IST
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