Ram Ratna Wires Receives NCLT Approval for Merger with its Subsidiary

Ram Ratna Wires Limited has secured approval from the National Company Law Tribunal (NCLT), Mumbai Bench, for the merger of its subsidiary, Global Copper Private Limited, with itself. The order that is dated on May 29, 2025, marks a significant milestone in Ram Ratna’s corporate restructuring and growth strategy.

Scheme of Amalgamation Approved

The approved Scheme of Amalgamation, filed under Sections 230 to 232 of the Companies Act, 2013, involves the merger by absorption of Global Copper (the transferor company) into Ram Ratna Wires (the transferee company).

The equity shares held by Ram Ratna in Global Copper (60% ownership) will be cancelled without any consideration. Other shareholders of Global Copper will receive 6 fully paid equity shares of ₹5 each in Ram Ratna for every 1 fully paid equity share of ₹10 held in Global Copper.

Strategic Rationale & Synergies

The merger aims to consolidate operations under a single entity within the RR Global group and unlock operational and commercial synergies:

• Stronger market presence through integration of complementary products.
• Operational efficiencies across procurement, dispatches, and resource utilization.
• Consolidated product portfolio relevant to the copper and electrical segments.
• Improved financial strength, enabling better trade credit and supplier negotiations.
• Enhanced EBITDA margins and profitability through streamlined operations.

Ram Ratna is a leading manufacturer of enamelled copper wires. while Global Copper specializes in seamless copper tubes and coil products. The merged entity is poised to benefit from robust demand in sectors like air conditioning and electrical infrastructure, bolstered by supportive government policies such as the Production Linked Incentive (PLI) scheme and anti-subsidy duties.

Compliance and Tax Matters

All statutory requirements have been fulfilled. The NCLT acknowledged that:

• The amalgamation will not adversely affect creditors or shareholders.
• Pending GST litigations of Global Copper will be carried forward to Ram Ratna, which assumes full responsibility.
• The Income Tax Department retains the right to review the scheme for potential tax implications post-merger.

Next Steps

The merger will become effective upon filing the certified NCLT order with the Registrar of Companies. Both companies are directed to complete the necessary filings within 30 to 60 days. This includes stamp duty adjudication as well. This merger is expected to fuel Ram Ratna Wires’ position in the copper industry and thereby creates long-term value for shareholders.

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://www.bseindia.com/xml-data/corpfiling/AttachLive/dec27cd3-5fa5-4367-b092-23bc0c969576.pdf