NCLT rejects Mallcom amalgamation scheme with subsidiary Mallcom VSFT Gloves

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MALLCOM · price

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Price reactionminutes from the announcement price · days from the prior close

-1.3%Reaction day

₹984.50

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announcement price

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Nifty Microcap 250market · in no size index; the smallest one is used+0.2%-1.5% vs market

Other Industrial Products peers, median of 25sector+0.6%-1.9% vs sector

On the reaction day the stock moved 1.5 pts less than Nifty Microcap 250 and 1.9 pts less than its Other Industrial Products peers, over the same two closes: a difference in percentage points, not a measure of what the filing did.

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-1.3+0.2-1.5+0.6-1.9

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UpDownMarket · Nifty Microcap 250Sector · Other Industrial Products peers, median of 25Pending

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AI summary

NCLT Kolkata rejected Mallcom (India) scheme to merge wholly-owned subsidiary Mallcom VSFT Gloves. The tribunal held that Section 233(1)(b) of the Companies Act requires approval from members holding at least 90 percent of total shares. While 99.98 percent of those present and voting approved, this worked out to only 82.19 percent of total share capital of about 62.4 lakh shares. Proceedings before the Regional Director were quashed. Company is evaluating further action.

Likely market impact

Merger plan with subsidiary failed at NCLT over shareholder approval threshold. Company may refile or appeal. Minor setback with limited direct impact on shareholders.