Ceigall India Approves Merger Of Its Infra Arm With C&C Construction To Enhance Performance
Ceigall India Approves Merger Of Its Infra Arm With C&C Construction To Enhance Performance
The proposed affiliation is subject to approval by the National Company Law Tribunal
To boost business operations, the board of Ceigall India, an infrastructure construction firm, has approved the merger of its subsidiary, Ceigall Infra Projects, with publicly listed C&C Construction.
Post-merger, Ceigall India will hold 95 percent of the merged entity. Eventually, as per the Securities and Exchange Board of India (SEBI) regulations, it will be reduced to 75 percent.
The proposed affiliation is subject to approval by the National Company Law Tribunal (NCLT), with hopes of reviving C&C Construction, which has been under liquidation.
The merger aims to integrate C&C Construction's capabilities in transmission, distribution, railways, bridges, and building construction into Ceigall's infrastructure portfolio.
It will help in administrative and operational rationalization, enhance business efficiency, flexibility and agility and position the transferee company for sustainable growth.
In the Bombay Stock Exchange (BSE) filing, the company maintained that while Ceigall India was well-capitalised, the merger would allow Ceigall Infra to garner more equity from the investors. It will enable the parent company to meet existing equity commitments and provide equity for future HAM projects.
The acquisition is also likely to improve Ceigall Infra's visibility (having a Rs.115 crore turnover and a Rs.64 crore net worth) and attract more institutional interest.
