Intimation under regulation 30 of SEBI LODR regulations 2015 - Scheme of Arrangement
MERCANTILE · price
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Mercantile Ventures Ltd's Board, on April 8, 2025, approved a Scheme of Amalgamation to merge its subsidiary India Radiators Limited into itself. Mercantile already holds 38.74% of India Radiators' equity and 95.58% of its voting rights. Under the swap ratio, shareholders of India Radiators will get 10 equity shares of Mercantile (face value Rs 10) for every 36 equity shares held (face value Rs 10). India Radiators is a small company with total assets of Rs 1,826.31 Lakhs and negligible turnover of Rs 4.74 Lakhs, while Mercantile is much larger with total assets of Rs 44,133.05 Lakhs and turnover of Rs 5,292.37 Lakhs as of December 31, 2024. The swap ratio has been certified by registered valuers and merchant bankers. The Scheme will now go to NCLT, BSE, SEBI, and shareholders/creditors for approvals.
This is a simplification of the group structure by absorbing a small, low-activity subsidiary, which should reduce administrative and operational costs for Mercantile. Since India Radiators is already a subsidiary, the financial impact on Mercantile's earnings is likely minimal, though minority shareholders of India Radiators will become shareholders of Mercantile.