Merger to make Mahindra Forgings No. 2 player

Mahindra Forgings Ltd said on 7 June 2007 the proposed merger of its three subsidiaries with the company will propel it to the position of second largest forging player in the Indian market.

Post merger the combined turnover of all the entities is estimated to be in the region of Rs2,000 crore based on 2006-07 financials, making it the second largest forging player in the Indian market, Mahindra Forgings said in a communique to BSE.
As per the proposed merger, Mahindra Forgings would amalgamate Mahindra Stokes Holding Company Ltd (MSCHL), Mahindra Forgings Overseas Ltd (MFOL) and Mahindra Forgings Mauritius Ltd (MFML) with itself.

The merger plan involves merging the three entities — MFOL, which owns 100% of Jeco Holdings AG; MFML that owns 100% in Schoneweiss & Co GmbH; and MSCHL, which owns 99.8% of Stokes Group Ltd, into Mahindra Forgings Ltd.

After the merger — approved by the company’s board on 5 June — Jeco Holdings AG, Schoneweiss and Co GmbH and Stokes Group Ltd, would become close to 100% subsidiaries of Mahindra Forgings.

Read more in The Livemint article.

Mahindra Forgings merges three firms with self

Shares of Mahindra Forgings were down 0.47% at Rs 234.95 after the board approved the scheme of amalgamation envisaging the merger of the Mahindra Stokes Holding Company Ltd, Mahindra Forgings Overseas Ltd and Mahindra Forgings Mauritius Ltd with the company with effect from April 01.

The Board has also accepted the share swap ratio recommended for the scheme. The company will issue 20 equity shares of Rs 10 each to the equity shareholders of MSHCL, MFOL and MFML.

The shares will be allotted at par for every 103 equity shares of Rs 10 each in MSHCL, 49 equity shares of €1 each in MFOL and 73 equity shares of €1 each in MFML.

Once the scheme comes into effect, the resulting shareholding of Mahindra & Mahindra Ltd is expected to be around 60.56%.