Schaeffler India Limited has received shareholders’ nod for the amalgamation of the two unlisted entities, INA Bearings India Private Limited and LuK India Private Limited with the company on March 20, 2018. The Company has already obtained no objection clearance from SEBI. The merger is now pending sanction from the NCLT benches in Chennai and Mumbai.
“The merger is aimed at leveraging the synergies of the three companies and it will allow us to combine our strengths to deliver superior value for shareholders and customers. Once the merger is effective, the combined entity will result in the creation of a leading Indian Automotive and Industrial supplier with around Rs 40 billion of revenues and around 3,000 employees. ‘One Schaeffler’ proposes to realize revenue and cost synergies by bundling product offerings, leveraging distribution networks and reducing overhead costs,” said Dharmesh Arora, Managing Director Schaeffler India Limited.
Following the sanction of NCLT and post completion of other legal formalities, Schaeffler India Limited shall issue 14.64 million new equity shares, in the ratio of 10 equity shares to shareholders of INA India, for every 65 equity shares held and 10 equity shares to shareholders of LuK India, for every 35 equity shares held, thereby increasing its outstanding equity shares to 31.26 million. Shareholding of the Promoter group post the merger will be 74.13%.