Maithan Alloys to Merge Subsidiary with Itself
By Ankur Chandra | Updated at: May 31, 2025 10:45 PM IST
Maithan Alloys Ltd, a leading ferro alloys producer, has announced board approval for the merger of its wholly-owned subsidiary, Impex Metal & Ferro Alloys Ltd, with itself. The amalgamation, approved during the board meeting held on May 28, 2025, is positioned as a strategic move to consolidate operations, streamline corporate structure, and enhance cost efficiencies.
Key Highlights of the Merger
| Particulars | Maithan Alloys (Transferee) | Impex Metal & Ferro Alloys (Transferor) |
|---|---|---|
| Ownership Structure | Listed entity | 100% owned by Maithan Alloys |
| FY25 Revenue | ₹2,546.27 crore (standalone) | ₹24.64 crore (standalone) |
| FY25 PAT | ₹640.23 crore | Loss of ₹9.16 crore |
| Manufacturing Status | Active | Suspended since April 2023 |
| Other Businesses | Real estate | Only ferro alloys |
No shares will be issued or cancelled as part of the merger. All 10,00,000 equity shares of Impex, held entirely by Maithan Alloys and its nominees, will stand cancelled once the scheme becomes effective.
Rationale for the Merger
The company has outlined several strategic benefits from the merger:
- Simplified group structure and streamlined business operations
- Cost savings through elimination of duplicate administrative and regulatory processes
- Optimized resource utilization including manpower, logistics, and management
- Strengthened financial position and enhanced capacity for future expansion
- No dilution or change in promoter shareholding or public shareholding post-merger
Impex is primarily engaged in ferro alloy manufacturing but ceased production in April 2023 due to rising power costs. Maithan Alloys, on the other hand, continues active operations and also pursues real estate projects.
Regulatory Status
The merger is not considered a related party transaction under Section 188 of the Companies Act, 2013, due to its exemption under MCA Circular No. 30/2014 and SEBI Regulation 23(5)(b). The scheme is subject to approvals from the National Company Law Tribunal (NCLT) and the Registrar of Companies (RoC), West Bengal.
Shareholding Impact
There will be no change in Maithan Alloys’ shareholding pattern post-merger. Promoter holding will remain unchanged at approximately 74.96% with public shareholders retaining 25.04% stake. Total outstanding shares will remain at 2,91,11,550.
This merger reinforces Maithan Alloys’ strategic focus on operational efficiency, cost optimization, and strengthening its core ferro alloys business amid challenging market conditions.
Disclaimer: This content is only for informational purpose. It does not make any recommendation to act or invest. Please read the offer documents carefully before investing. Investments are subject to market risks and other risks. There is no guarantee of the actual returns that will be given.
REF: https://nsearchives.nseindia.com/corporate/MAITHANALL_28052025224948_SchemeofMerger.pdf
