Kirloskar Ferrous Industries Limited (KFIL) has received approval from the National Company Law Tribunal (NCLT) for the Scheme of Arrangement and Merger by Absorption involving its wholly-owned subsidiaries, Oliver Engineering Private Limited (OEPL) and Adicca Energy Solutions Private Limited (AESPL). The NCLT’s order, dated 17 March 2026, dispenses with the requirement to hold meetings of the equity shareholders and unsecured creditors of the involved entities.
The merger aims to consolidate the businesses of the applicant companies, enhancing long-term sustainability and growth. It also seeks to streamline the current holding structure, reducing the number of companies and associated regulatory compliances. The merger will enable better administration, cost optimisation, and leverage synergies by pooling resources to achieve economies of scale.
The appointed date for the scheme is set as 1 April 2025. The board of directors of the applicant companies approved the scheme of amalgamation in meetings held on 4 August 2025. Upon the scheme’s effectiveness, no new shares will be issued by KFIL in exchange for its holdings in OEPL and AESPL, as they are wholly-owned subsidiaries. Consequently, the issued and paid-up capital of OEPL and AESPL will be cancelled automatically, and both entities will be dissolved without winding up.
The statutory auditors of the respective companies have confirmed that the accounting treatment under the scheme aligns with the accounting standards specified under Section 133 of the Companies Act, 2013. This merger is expected to enhance KFIL’s position in terms of asset base, revenues, and service range, providing greater integration and flexibility.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).
This article is written by Kinjal and reviewed by Aman Shukla before publication.