Hardwyn India Hit 5% Upper Circuit As Board Okays Merger Deal With Subsidiary

The Board of Directors of Hardwyn India has approved the draft scheme of amalgamation with subsidiary Fiba Hardwyn Locks. The proposed scheme was already reviewed by the audit committee and was approved by the board upon its recommendation.

Earlier in October last year, the board had approved the scheme of amalgamation and filed the scheme of amalgamation on BSE and NSE. However, the same was returned due to technical grounds.

"Fiba Hardwyn Locks Limited will merge with Hardwyn India," the leading architectural hardware manufacturer said in a filing.

The transferee company shall issue up to 26,48,00,880 equity shares to the eligible shareholders of the transferor company, it said.

"The Transferor Company's business shall be integrated and consolidated with business in relation to generic products carried out by the Transferee Company resulting in strengthening of the business, synergistic benefits, economies of scale, faster decision making, integration of supply chain, reduction in operating costs, strengthening the focus, enhancing the ability to deal with regulatory challenges, long-term growth, increasing profitability, higher market share, better customer service, increased ability to face the competitive regulatory environment, risks and policies and consolidating the financial, management and operational resources," it added.

The proposed amalgamation shall also enable the Transfer or company to address the competitive regulatory environment, risks and policies, better management of supply chain, better product profiling, greater differentiation, ability to strategize the business for long-term growth, consolidation and creation of shareholder value.

On Friday, the shares of Hardwyn India opened on the NSE at Rs 38.80 apiece and hit a 5% upper circuit limit of Rs 39.50 during the morning deals. The stock made a 52-week-high of Rs 57.15 on (07-Jun-2023) and a 52-week-low of Rs 10.66 on (06-Jul-2022).