NCLT approves the scheme of amalgamation of Lincoln Parenteral Ltd and Lincoln Pharmaceuticals Ltd

Hon'ble National Company Law Tribunal, Ahmedabad Bench, (NCLT) has approved the scheme of amalgamation of Lincoln Parenteral Ltd and Lincoln Pharmaceuticals Ltd under Sections 230 to 232 and other applicable provisions of the Companies Act, 2013. Amalgamation is expected to bring lot of synergies in terms of operations efficiency, enhance competitive strength, cost-effectiveness and productivity for the combined entity.

The order sanctioning the scheme was pronounced on September 14, 2021 and uploaded on the website of Hon'ble NCLT on September 15, 2021. Appointed date of the scheme is April 01, 2019. The scheme will be effective upon filing of certified copy of the order of the Hon'ble NCLT with the Registrar of Companies, Gujarat.

Lincoln Parenteral Ltd is subsidiary company of Lincoln Pharmaceuticals Ltd engaged in the business of small Parenteral Injection Products. For the year ended March 2021, Lincoln Parenteral reported turnover of Rs. 44.64 crore and Net profit of Rs. 1.84 crore. Lincoln Pharmaceuticals Ltd holds 98.58% in Lincoln Parenteral Ltd as on March 2021.

During FY20-21, Lincoln Pharmaceuticals Ltd had filled petition with Hon'ble National Company Law Tribunal (NCLT), Ahmedabad Bench for approve of the scheme of amalgamation of Lincoln Parenteral Limited ("Transferor Company") with Lincoln Pharmaceuticals Limited ("Transferee Company") and their respective Shareholders and Creditors.

Commenting on the development, Mr. Mahendra Patel, Managing Director, Lincoln Pharmaceuticals Limited, said, "The corporate restructuring practice will bring lot of synergies for the both the company and will lead to increased competitive strength, cost reduction and efficiencies, productivity gains, and logistic advantages, thereby significantly contributing to future growth. We are confident to improve our growth numbers of revenue, margins and profitability in FY22. Our strategic growth initiatives, product and geographical expansion, operational efficiency and debt free status are likely to maximise value for all stakeholders in the near to medium term."

Shares of Lincoln Pharmaceuticals ltd. was last trading in BSE at Rs. 393.7 as compared to the previous close of Rs. 383.55. The total number of shares traded during the day was 21256 in over 1154 trades.

The stock hit an intraday high of Rs. 396.6 and intraday low of 379.1. The net turnover during the day was Rs. 8241306.

Source : Equity Bulls

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