Jyothy Labs Ltd updates on amalgamation

The Board of Directors of Jyothy Labs Limited at its meeting held today have approved a Scheme of Amalgamation under the provisions of the Companies Act, 2013 for amalgamation of its Wholly Owned Subsidiary viz. Jyothy Fabricare Services Limited (Transferor Company) with Jyothy Labs Limited (the Transferee Company), subject to approval of shareholders and/or creditors of the respective companies and the sanction of the Hon'ble National Company Law Tribunal - Mumbai Bench, Official Liquidator, Registrar of Companies, Ministry of Corporate Affairs and such other authorities as may be necessary. The appointed date for the purpose of said Amalgamation will be October 1, 2022.

The Transferor Company is in the business of laundry and dry-cleaning services and the Transferee Compny is in the business of manufactuting of fabric care, dishwashing, personal care and household insecticides products.

The Transferor Company and the Transferee Company are companies within the same group of companies ("Group") and since both the Companies are operating in complementary / similar line of business, the same can be conveniently combined for mutual benefit and can be carried out more efficiently as one amalgamated entity.

The proposed amalgamation will help pool and combine finances and resources into one consolidated entity which will result in administrative and operations rationalization, organization efficiencies, optimal utilization of various resources, overheads and other expenses and better compliance management.

The proposed amalgamation will help the Transferee Company to achieve financial strength and flexibility aiding in achieving economies of scale, more focused operational efforts, standardization and simplification of business processes and productivity improvements.

The synergies created by the amalgamation would increase operational efficiency and integratebusiness functions.

Source : Equity Bulls

Keywords

JyothyLabs Amalgamation JyothyFabricareServices