Aarti Industries receives nod from Bombay and Gujarat High Courts for scheme of amalgamation

The amalgamation will result in the company’s EPS, ROCE, ROE getting increased along with the shareholder value in the long term

Aarti Industries has received necessary approvals from High Courts of Bombay and Gujarat for the scheme of amalgamation of Gogri & Sons Investments Private Limited (GSIPL) and Alchemie Leasing And Financing Private Limited (ALFPL) and Anushakti Holdings Limited (AHL) and Anushakti Chemical and Drugs Limited (ACDL) with itself.

The said Scheme of Amalgamation was sanctioned by High Court of Judicature of Bombay vide its order dated July 10, 2015 and the High Court of Gujarat at Ahmedabad vide its order dated July 31, 2015.

As a result of this amalgamation, the Earnings Per Share (EPS), Return on Capital Employed (ROCE) and Return on Equity (ROE) of the company will get increased along with the shareholder value in the long term.

Rajendra Gogri, Chairman and Managing Director, Aarti Industries said, “The merger will simplify and rationalise promoters’ shareholding and increase the public float of shares thereby enhancing the liquidity of the stock. Further, the merger will also result in elimination of associate companies and would make the shareholding structure more transparent and investor friendly.”