Outcome of the Board Meeting - Scheme of Arrangement.
Awaiting price reaction for this filing.
India Radiators Limited's Board has approved a Scheme of Amalgamation to merge itself into its holding company, Mercantile Ventures Limited (MVL), under Sections 230-232 of the Companies Act, 2013. MVL already holds 38.74% of equity and 95.58% of voting rights in India Radiators. As per the share exchange ratio, shareholders of India Radiators will receive 10 equity shares of MVL (face value ₹10) for every 36 equity shares held (face value ₹10). No cash consideration is involved. IRL will be dissolved without winding up once the scheme takes effect. The scheme still needs NCLT, SEBI, stock exchange, shareholder, and creditor approvals.
For India Radiators shareholders, this is effectively a reverse merger into MVL, with their holdings converting into MVL shares at the agreed swap ratio. The stock may see reduced trading interest as IRL will cease to exist post-merger, and shareholders will become MVL shareholders.