KDDL Limited announced on Tuesday the scheme of amalgamation of its wholly-owned subsidiary Satva Jewellery and Design Limited, and the dissolution of the transferor company without winding up. Both the companies are part of the Saboo Business Group.
The amalgamation will mean KDDL will get greater integration and financial strength, as well as flexibility for the amalgamated entity, which would result in maximizing overall shareholder value and will improve the competitive position of the combined entity.
KDDL Ltd is currently trading at Rs149.20, down 3.55 or 2.32% from its previous closing of Rs152.75 on the BSE.
“The existence of independent companies at times result in duplication of efforts and the integration and combination of such businesses will lead to greater and optimal utilization of resources. The amalgamation would, therefore, enable the Transferee Company to increase operations and confer a competitive advantage on the entire business. With integrated processes, the Transferee Company can achieve higher scales of operation. There will be common funding mechanism,” the company informed the exchanges on Tuesday.
