ABHILASHA TEX-CHEM LIMITED Vs. VALIANT ORGANICS LIMITED

JUDGEMENT

(1.) The Counsel for the Applicants states that the present Scheme is an Amalgamation of Abhilasha Tex-Chem Limited ("The Transferor Company") with Valiant Organics Limited ("The Transferee Company") and their respective Shareholders.

(2.) The Counsel for the Applicants further submit that the Transferor Company is engaged in the business of Specially chemical intermediate. The Transferee Company is engaged in the business of manufacturing and marketing of different types of chlorophenol, a chemical having applications mainly into agro-chemical industry with a single location manufacturing facility at Sarigam.

(3.) The rationale for the Scheme is that the Transferee Company and the Transferor Company both are engaged in the business of manufacturing, buying, selling and export of Chemicals. Thus both are engaged in the similar line of business, there will be consolidation of business and assets of the Company, synergy of operations and networks of both the Companies. This will help achieve better and more efficient utilization of available resources, benefits of internal economies, diversification and improving organizational efficiency The Amalgamation will result in an increase in the public float of the Transferee Company, which will form part of public shareholding that will in turn increase the trading stock of the shares and positively impact the liquidity of the shares of the Transferee Company listed on SME platform of BSE Limited.