INSUBCONTINENT EXCLUSIVE:
Mumbai: Companies are increasingly absorbing their unlisted units to simplify their holding structure and benefit from the Goods and
In the past few weeks, several listed entities, such as Hindustan Unilever, Lux Industries, Orient Refractories, and Hindustan Foods, have
is an encouraging trend because it will simplify their holding structure by bringing their common businesses at one place to reduce
related-party transactions and remove potential conflicts of interest
that the move will help it drive synergies and make the parent company more consumer-centric.
Early in August, Orient Refractories, a
itself for better operational efficiency and simple holding structure.
Analysts said the new tax regime had forced companies to streamline
This deal, according to the company, will help minority shareholders unlock value.
Recently, Hindustan Foods also announced the scheme of
arrangement for demerger of contract manufacturing business of Avalon Cosmetics Pvt
Ltd into the company.
In August 2017, the domestic arm of German automotive and industrial major Schaeffler (formerly known as FAG Bearings
The stock has moved 30% since then.
Last year, capital market regulator Sebi had introduced more checks and balances for mergers and
acquisitions involving unlisted companies to curb manipulation
The concept of reverse merger was stopped following complaints that mergers of various unlisted companies with small and unknown listed
companies were suspicious.
