Paradeep Phosphates Limited has informed the Exchange about Scheme of Arrangement
PARADEEP · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Awaiting price reaction for this filing.
The NCLT Cuttack Bench has approved the second motion petition for the scheme of arrangement under which Mangalore Chemicals & Fertilizers Limited (MCFL) will be amalgamated into Paradeep Phosphates Limited (PPL), with effect from the appointed date of April 1, 2024. Under the share exchange ratio, PPL will issue 187 equity shares (face value Rs. 10 each) for every 100 equity shares held in MCFL, meaning MCFL shareholders will become shareholders of PPL on a proportionate basis. The scheme was overwhelmingly approved with 99.9984% of equity shareholders and 100% of unsecured creditors voting in favour. The scheme will become effective once certified copies of the NCLT Cuttack order and the NCLT Bengaluru order are filed with the Registrar of Companies, after which MCFL will be dissolved without winding up.
This is a significant consolidation event for PPL shareholders — the company is absorbing MCFL's business and assets, which will expand its scale in the fertilizers sector. MCFL shareholders will receive PPL shares as consideration, potentially leading to share dilution for existing PPL shareholders. The NCLT approval is a major regulatory milestone, though the scheme still awaits NCLT Bengaluru's order before becoming effective.