The National Company Law Tribunal (NCLT) has approved the scheme of arrangement between Pritika Industries Limited (PIL) and Pritika Auto Industries Limited (PAIL) for the demerger of its automotive, tractor and engineering component business. 

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The approval was granted on December 4 by the Chandigarh Bench of the National Company Law Tribunal. Upon the scheme coming into effect, the demerged company will be known as Pritika Industries Limited (PIL) and the resulting company will be Pritika Auto Industries Limited (PAIL).

"We are pleased to inform you that the Chandigarh Bench of the Hon'ble National Company Law Tribunal (NCLT) vide its Order dated 4th 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’)," the company said in an exchange filing. 

Share Swap Ratio

According to the exchange filing, eligible shareholders of Pritika Auto Industries (PAIL) would be awarded 10 shares of Pritika Industries (demerged company) for every 63 shares of PAIL with a face value of Rs 2 each. 

"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," the filing reads.