Kriti Industries (India) Limited has informed the Exchange about Approval of amalgamation of Kriti Auto & Engineering Plastics Private Limited (Wholly owned Subsidiary) with the Company
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Kriti Industries (India) Limited's Board has approved the merger of its wholly-owned subsidiary, Kriti Auto & Engineering Plastics Private Limited, into the parent company under the Companies Act, 2013. The subsidiary has discontinued its business operations and is not a going concern. No cash or share consideration is involved since the subsidiary is fully owned. The rationale includes consolidating the group structure, reducing administrative duplication, cutting compliance costs, and achieving economies of scale. The transaction is exempt from related party transaction provisions as it involves a holding company and its wholly-owned subsidiary. The scheme is subject to NCLT and other regulatory approvals.
This is a straightforward internal restructuring of a dormant subsidiary. No new shares are being issued, no open offer is triggered, and shareholder dilution is not a concern. The stock movement, if any, will likely be neutral as the subsidiary had no net worth and was not operational.