Auto components maker Minda Corp's board approves scheme to amalgamate five wholly-owned subsidiaries into parent company

Mumbai: Auto components maker Minda Corporation Monday said that its board has approved a scheme to amalgamate five of its wholly-owned domestic subsidiaries into the parent company.

The merger, subject to necessary statutory and regulatory approvals, is expected to be completed over the next six to eight months, Minda Corp said in a statement. The subsidiary companies proposed to be merged are Minda SAI, Minda Automotive Solutions, Minda Autoelektrik, Minda Management Services and Minda Telematics & Electric Mobility Solutions.

“All assets and liabilities of these companies shall be transferred to Minda Corp at book value as on the designated appointed date of 1 April, 2018,” the company said.

The revenue of the merged entity will increase to around Rs 1,972 crore compared to standalone revenue of Rs 9,70.2 crore, based on FY18 results.

The proposed merger will not result in the expansion of equity capital or change in the shareholding pattern of Minda Corporation, it added.

“Spark Minda family is excited about the proposed merger of 100 percent Indian subsidiaries which would result in simplification of corporate structure and a larger standalone entity.

“This initiative would lead to cost optimisation and better value proposition to the stakeholders,” chairman and group chief executive Ashok Minda said.