Mukand Limited - Business Undertaking from its subsidiary demerged into holding company

Recently Hon'ble National Company Law Tribunal, Mumbai Bench (“NCLT”) sanctioned the Scheme of Arrangement (“the Scheme”) between Mukand Sumi Metal Processing Limited (“Demerged Company” or “MSMPL”), wholly owned subsidiary of Mukand Limited, with Mukand Limited (“Mukand”) and their respective shareholders and creditors under Sections 230 to 232 and other applicable provisions of the Companies Act, 2013 the rules and/ or regulations made thereunder.

- Anirudha Jain

Mukand Limited is a multi-division, multi-product conglomerate which mainly deals in manufacture of special alloy steel / stainless steel, billets, bars, rods, wire rods, EOT cranes, material handling equipment, other industrial machinery, comprehensive engineering services and construction/erection services. The equity shares of Mukand Limited are listed on nationwide bourses.

Mukand Sumi Metal Processing Limited (“MSMPL”) is a wholly owned subsidiary of Mukand Limited which inter-alia, engaged in the business of stainless steel cold finished bars & wires and treasury & investment business.

In 2020, MSMPL demerged its cold finished alloy steel bars and wires business to Mukand Sumi Special Steel Ltd. (MSSSL) has been approved by National Company Law Tribunal (NCLT), Mumbai Bench vide its order dated June 30, 2022. After demerger, MSMPL continues to carry on the business of cold finished stainless-steel bars and wires. Moreover, in terms of arrangement with Joint Venture partner-Sumitomo Corporation, Japan (SC), Mukund Limited purchased 50% equity stake of MSMPL from SC at a consideration of Rs.53.11 Crore and MSMPL has become a Wholly Owned Subsidiary of Mukand Limited with effect from 30th September 2022.

Key events in chronological order:

> Demerger of Alloy steel bar business from MSMPL.

> Exit of joint venture partner from MSMPL.

> Demerger of Steel cold finished bars and wire business through the present scheme into Mukund Ltd.