The National Company Law Tribunal (NCLT) has approved the Scheme of Amalgamation between JK Tyre & Industries and Cavendish Industries Limited. The approval, dated November 20, 2025, facilitates the merger of Cavendish Industries into JK Tyre, streamlining operations and enhancing shareholder value. This strategic move consolidates businesses under a single listed entity and promises improved efficiencies and resource pooling.
NCLT Approves Amalgamation
The National Company Law Tribunal, Jaipur Bench, has sanctioned the Scheme of Amalgamation of Cavendish Industries Limited with JK Tyre & Industries Limited. The order, dated November 20, 2025, was uploaded to the Tribunal’s website and marks a significant step in the company’s restructuring efforts.
Rationale for the Scheme
The approved scheme aims to consolidate operations and create synergies between JK Tyre & Industries and Cavendish Industries. Key benefits include:
- Economies of scale and improved operational efficiencies.
- Streamlined administrative and managerial overheads.
- Reduced interest costs.
- Better resource allocation for growth.
- Enhanced ease of doing business.
- Comprehensive product offerings and improved sales and distribution.
- Improved customer satisfaction.
- Significant reduction in legal and regulatory compliances.
- Improved investor perception.
Key Scheme Details
As per the scheme, upon its effectiveness, the Transferee Company will allot 92 fully paid-up equity shares of INR 2 each for every 100 equity shares of INR 10 each held in the Transferor Company. The appointed date for the scheme is April 1, 2025.
Compliance and Next Steps
JK Tyre & Industries will deliver a certified copy of the NCLT order to the Registrar of Companies for registration within 30 days. The company has also confirmed compliance with observations made by the Registrar of Companies and other regulatory requirements.
Source: BSE
