Shyam Metalics Subsidiary Merger Approved by NCLT

Shyam Metalics and Energy Ltd announced that its wholly-owned subsidiary, Shyam Sel and Power Limited (SSPL), has received sanction from the National Company Law Tribunal (NCLT) for the merger of Shree Venkateshwara Electrocast Private Limited (SVEPL). The merger is effective retroactively from April 01, 2024. This strategic amalgamation aims to consolidate the group's aluminium foil operations under a single entity, enhancing operational efficiencies and supply chain coordination. A key financial benefit includes the absorption of SVEPL's accumulated losses by SSPL under Section 72A of the Income-tax Act, 1961, creating a significant tax shield and immediate cash-flow savings for the combined entity. The Income Tax Department has already issued a No Objection Certificate for the scheme.