KIRLOSBROSNSEKirloskar Brothers Limited· Compressors / PumpsMediumNeutral
Announced Tue, 4 Nov · 17:11 IST

Kirloskar Brothers Limited has informed regarding Approval of the Scheme of Amalgamation between wholly owned subsidiaries.

Nclt Scheme FiledStrategic Transactions View source PDF

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▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.

Price reaction · full curve

Awaiting price reaction for this filing.

AI summary

The NCLT Mumbai Bench has approved the Scheme of Amalgamation between The Kolhapur Steel Limited (TKSL, transferor) and Karad Projects And Motors Limited (KPML, transferee), both wholly owned subsidiaries of Kirloskar Brothers Limited, via order dated November 3, 2025. The appointed date of the scheme is October 3, 2024. Since TKSL is a 100% subsidiary of KPML, no new shares will be issued; KPML's authorized share capital will rise to ₹98 crore post-merger. The merger aims to simplify group structure, combine steel castings with electric motor manufacturing businesses, and utilize TKSL's surplus land in Kolhapur for expansion. The Income Tax Department raised objections citing potential misuse of carry-forward losses (around ₹83 crore) and unabsorbed depreciation, but NCLT approved the scheme, accepting the company's commercial rationale. The scheme will become effective once the certified NCLT order is filed with the Registrar of Companies, Pune.

Likely market impact

This is an internal group restructuring between two unlisted wholly owned subsidiaries, so there is no direct impact on Kirloskar Brothers' share price, shareholding pattern, or EPS. Shareholders are unlikely to see any material change at the consolidated level, though the merger may streamline operations and reduce administrative costs within the group's manufacturing footprint.