HLE Glascoat Limited has informed the Exchange about Scheme of Arrangement
HLEGLAS · price
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HLE Glascoat Limited has received approval from the NCLT Ahmedabad bench for the Scheme of Amalgamation of Kinam Enterprise Private Limited (a private transferor company incorporated in June 2023) into HLE Glascoat Limited. The appointed date for the merger is 7th August 2023, and the scheme was originally approved by both companies' boards on 13th February 2024. Upon filing the certified order with the Registrar of Companies in Ahmedabad, Kinam Enterprise will stand dissolved and all its assets, liabilities, and employees will transfer to HLE Glascoat. HLE Glascoat had secured debt of Rs. 311.11 crore as of September 2024 and an income tax outstanding demand of Rs. 5.57 crore.
Since Kinam Enterprise is a private company and the merger is into the listed entity (HLE Glascoat), existing public shareholders of HLE Glascoat will not see any change in their shareholding. The amalgamation simplifies the group structure, and all assets and liabilities of the private entity will now sit within HLE Glascoat. Shares may react mildly on the confirmation of effective date, but material impact on equity value is unlikely.