THEBUSINESSBYTES
BUREAU
KOLKATA,
OCTOBER 23, 2026
Shyam Metalics and
Energy Ltd on Friday said the National Company Law Tribunal (NCLT), Kolkata
Bench, has approved the merger of Shree Venkateshwara Electrocast Pvt Ltd
(SVEPL) with its wholly-owned subsidiary Shyam Sel and Power Ltd (SSPL), a move
aimed at consolidating aluminium foil operations and unlocking tax benefits.
The tribunal approved
the scheme through an order dated October 16, 2026, with the merger taking
effect retrospectively from April 1, 2024, the company said in a statement.
The amalgamation is
expected to streamline the group's aluminium foil business by bringing
complementary product specialisations, manufacturing and marketing operations
under a single corporate structure. The consolidation is also expected to
improve operational efficiency, strengthen supply chain coordination and
simplify administrative processes.
Following the filing
of the certified copy of the NCLT order with the Registrar of Companies, West
Bengal, SVEPL will be dissolved without winding up.
As SVEPL is already a
100 per cent subsidiary of SSPL, the merger will not involve the issuance or
allotment of fresh equity shares. Its existing share capital will stand
cancelled upon implementation of the scheme, the company said.
The amalgamation is
also expected to deliver financial benefits by allowing SSPL to absorb and set
off SVEPL's accumulated business losses and unabsorbed depreciation, subject to
the applicable provisions of Section 72A of the Income-tax Act, 1961.
The company said the
tax set-off would provide a substantial tax benefit and improve cash flows for
the combined entity at the applicable corporate tax rate under Section 115BAA.
The Income Tax Department had issued a no-objection certificate for the scheme
on May 15, 2026, after considering the modified appointed date of April 1,
2024.
The merger will also
facilitate the transfer of SVEPL's assets, liabilities, contracts and workforce
to SSPL, ensuring continuity of operations while consolidating the group's
business structure.
Commenting on the
development, Shyam Metalics and Energy Ltd Chairman and Managing Director Brij
Bhushan Agarwal said the NCLT approval marked a significant operational step
towards consolidating the company's value-added product businesses.
"By unifying our
manufacturing and marketing setup for value-added products like aluminium foil,
we drive operational flexibility, eliminate redundant administrative layers,
and optimize working capital. Additionally, the statutory set-off of
accumulated losses provides a substantial immediate tax savings, directly
adding value to our earnings and cash flows," Agarwal said.
Shyam Metalics and Energy Ltd, which is listed on the BSE and NSE under the symbols SHYAMMETL, is an integrated metal-producing company with operations spanning multiple metal and value-added product segments.
The amalgamation marks a further step in the group's efforts to simplify its corporate structure, consolidate aluminium foil operations and improve capital efficiency while leveraging eligible tax benefits.
