Outcome of the Board meeting approving proposed Scheme of Arrangement
MERCANTILE · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Awaiting price reaction for this filing.
The Board of Mercantile Ventures has approved a Scheme of Amalgamation to merge its subsidiary India Radiators Ltd into itself under Sections 230-232 of the Companies Act, 2013. Under the scheme, shareholders of India Radiators will receive 10 equity shares of Mercantile Ventures (face value INR 10) for every 36 equity shares of India Radiators (face value INR 10). Mercantile already holds 38.74% equity but 95.58% voting rights in India Radiators, making it a related-party consolidation. As of December 31, 2024, India Radiators had total assets of Rs. 1,826.31 Lakhs with negligible turnover (Rs. 4.74 Lakhs) and a marginal negative net worth, while Mercantile had total assets of Rs. 44,133.05 Lakhs and turnover of Rs. 5,292.37 Lakhs. The swap ratio has been certified by registered valuers and merchant bankers. The scheme now awaits approvals from stock exchanges, SEBI, shareholders, creditors, and the NCLT.
This is a group restructuring that consolidates a non-core, underperforming subsidiary into the listed parent and is likely to have minimal impact on Mercantile's stock price. Post-merger, promoter holding remains unchanged at 72.75%, with a slight increase in non-promoter shares, meaning minor dilution for existing public shareholders.