Intimation regarding order of NCLT Jaipur Bench.
Awaiting price reaction for this filing.
The NCLT Jaipur Bench has sanctioned the Composite Scheme of Amalgamation under which Udaipur Cement Works Ltd (UCWL), along with Hansdeep Industries & Trading Company Ltd and Hidrive Developers & Industries Ltd, will merge into JK Lakshmi Cement Ltd. UCWL is currently a 71.12% subsidiary of JK Lakshmi Cement, and once the scheme becomes effective, it will cease to be a subsidiary. The appointed date for the scheme is 1st April 2024. As per the swap ratio, shareholders of UCWL will receive 4 equity shares of JK Lakshmi Cement (face value ₹5) for every 100 equity shares of UCWL (face value ₹4) held. No new shares will be issued for the other two transferor companies as they are wholly owned by JK Lakshmi Cement. The scheme will become effective only after the certified copy of the NCLT order is filed with the Registrar of Companies, Jaipur.
UCWL shareholders will receive JK Lakshmi Cement shares in exchange for their holdings based on the swap ratio, making them shareholders of the larger combined entity. UCWL will be dissolved and delisted once the scheme is implemented, with its assets, liabilities and business merging into JK Lakshmi Cement, potentially simplifying the group structure and improving valuation multiples.