By IANS
Ahmedabad : Torrent Cables Ltd, part of the Ahmedabad-based Rs.29 billion Torrent group, will be amalgamated with Torrent Gujarat Biotech Ltd.
The amalgamation will be effective from July 1, 2006.
The shareholders of the two companies at meetings April 5 approved the proposal for amalgamation.
The scheme will now be presented to the Gujarat High Court after reorganization and consolidation of the capital structure of Gujarat Biotech Ltd.
This will be achieved by reducing the face value of each equity share of Rs.10 of the company to Rs.0.25, thus consolidating 40 shares of Rs.0.25 each into one share of Rs.10.
The scheme also provides for the share exchange ratio of one equity share in Torrent Gujarat Biotech of Rs.10 for every equity share of Rs.10 in Torrent Cables. The Torrent Cables shareholders will be allotted new shares after the share consolidation exercise.
The two companies Monday informed the Bombay Stock Exchange about the outcome of the shareholders meeting held Saturday.
The scheme also provides for compromise with creditors of the company by way of settlement of current dues at 0.50 percent, which means the creditors will forgo the balance dues of 99.50 percent.
In spite of repeated efforts, the management could not be reached for more details.
Torrent Cables, set up in 1989, has grown from a turnover of Rs.4 million to Rs.1.9 billion.
It manufactures a large Variety of cables up to 66 kV at its facility in Nadiad, about 40 km from here.
Its clients include Alfa Laval India, Bajaj Auto, Bajaj Tempo, Bharat Forge, Cummins India, Infoysis Technologies, Idea Cellular, Shapporji & Pullonji Co, Tata Motors, Thermax, Kinetic Engineering, Sekurit Saint Gobain India and Suzlon Energy.