The National Company Law Tribunal’s Chandigarh bench has approved the agreement between Pritika Industries and Pritika Auto Industries through an order.
After the company received approval for the demerger from the Chandigarh bench of the National Company Law Tribunal (NCLT), shares of Pritika Auto Industries Ltd. increased by more than 5% on Wednesday during trading. Via a Tuesday exchange filing, the company provided information about the same.
Under Sections 230 to 232 of the Companies Act, 2013, the Chandigarh bench of the National Company Law Tribunal (NCLT) has approved the scheme of arrangement between Pritika Industries (PIL), the demerged company, and Pritika Auto Industries (PAIL), the resulting company, and their respective shareholders, according to a filing made by the company. The order dated December 4, 2023, confirms this decision.
Through the demerger of Pritika Industries, Pritika Auto Industries will spin off its automotive, tractor, and engineering components business venture. The resulting company will keep up its production & sales of engineering goods, car parts & other tractor-related products.
Additionally, the company disclosed the demerger’s swap ratio. Awarded are 10 equity shares of Pritka Industries Ltd. with a face value of Rs. 10, to investors holding at least 63 equity shares of Pritika Auto Industries, valued at Rs. 2, as of the record date, which will be disclosed later.
After the announcement, Pritika Auto Industries’ shares increased by over 5% to close at Rs 32.34 on Wednesday, up from its previous close of Rs 30.77 on Tuesday morning. At its 52-week low of Rs 13.10 in March 2023, the stock has returned 150 percent of its initial investment.
The exchange filing also stated that Pritika Auto Industries Limited will submit a listing application for the listing of its shares upon the allotment of equity shares to Pritika Industries Limited shareholders in good time.
