Submission of Outcome of Board Meeting
Price
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Awaiting price reaction for this filing.
The Board of Kiran Syntex Ltd has approved a Scheme of Amalgamation to merge Gujarat Kiran Polytex Ltd (Transferor Company) into itself under Sections 230-232 of the Companies Act, 2013. Both companies operate in the textile and textile-related products business, and the rationale is to achieve business efficiency and economies of scale. As part of the merger, 41.125 shares of Kiran Syntex will be issued to shareholders of Gujarat Kiran Polytex for every 1 share held. Gujarat Kiran Polytex is much larger (FY25 revenue of about ₹28.84 crore and net worth of about ₹7.46 crore) compared to Kiran Syntex (FY25 revenue of about ₹85 lakh and net worth of about ₹1.97 crore). The transaction is not a related-party deal and is subject to statutory and regulatory approvals.
Post-merger, total shares will increase from about 42.5 lakh to around 3.81 crore, with promoter holding rising to about 1.68 crore shares and public holding to about 2.14 crore shares. The merger will substantially dilute existing shareholders but bring in a significantly larger business. Shareholders should watch for NCLT and regulatory approval timelines, and expect near-term stock volatility due to the major change in capital structure.