Companies

Wheels India to merge Sundaram Hydraulics with itself

Our Bureau | | Updated on: Dec 08, 2021

The proposed merger is expected to help in product diversification and growth for Wheels India | Photo Credit: AndreyPopov

The amalgamation will help in achieving consolidation, greater integration and flexibility that will maximise shareholders’ value

Wheels India Ltd (WIL) on Wednesday announced that Sundaram Hydraulics Ltd, engaged in the business of design, manufacture and distribution of hydraulic cylinders for the domestic and global mining and construction industry, will be merged with itself with effect from October 1, 2021, subject to approvals.

The board of WIL, at its meeting on December 7, approved the scheme of amalgamation of ₹57.5 crore Sundaram Hydraulics Ltd (SHL), promoted by WIL and Sundaram Finance Ltd, based on the recommendations of the audit committee and independent directors, according to a communique to the stock exchanges.

Under the determined share exchange ratio, 151 equity shares in transferee company of the face value of ₹10 each is credited as fully paid-up for every 15,000 equity shares of ₹10 fully paid-up held in transferor company (SHL).

Also read : Wheels India plans fresh capex of ₹37 cr on export boom

The amalgamation will help in achieving consolidation, greater integration and flexibility that will maximise overall shareholders’ value and improve the competitive position and negotiation power of the combined entity,

The proposed merger is expected to help in product diversification and growth for WIL and will help in expansion of business as SHL brings its own set of customers. Also, the amalgamation will help in widening the product offering to existing strategic customers.

The statement also said cost savings are expected to flow from more focused operational efforts, rationalisation, standardisation and simplification of business processes, elimination of duplication and rationalisation of administrative expenses.

Published on December 08, 2021
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