NCLT admits Digjam Ltd scheme of arrangement petition
- NCLT Chennai bench admitted the scheme of arrangement petition on September 2, 2026
- Shareholders and creditors approved the scheme, evidenced by Chairman's report dated August 16, 2026
- Reid & Taylor International Private Limited is the demerged company; Digjam Limited is the resulting company
- Statutory authorities have 30 days to file representations against the proposal
- Next hearing scheduled for October 28, 2026
*this image is generated using AI for illustrative purposes only.
The National Company Law Tribunal (NCLT) Chennai bench has admitted the petition for a scheme of arrangement involving Digjam Limited and Reid & Taylor International Private Limited.
The tribunal passed the order on September 2, 2026, following the approval of the proposed scheme by shareholders and creditors. The Chairman’s report dated August 16, 2026, which evidences this approval, was placed on record during the proceedings.
Regulatory Process
The joint petition was filed under Sections 230-232 of the Companies Act, 2013, read with the Companies (Compromises, Arrangements and Amalgamations) Rules, 2016. Reid & Taylor International Private Limited is designated as the demerged company, while Digjam Limited is the resulting company.
The NCLT directed the petitioner to serve notices to various statutory authorities, including:
- The Central Government through the Regional Director (Southern Region), Ministry of Corporate Affairs
- The Registrar of Companies, Coimbatore
- Income Tax Authorities
- SEBI, NSE, and BSE
- The Board of Approval Special Economic Zone of India (Madras)
- Other sectoral regulatory authorities as applicable
These authorities have 30 days from the date of receipt of notice to file any representations. If no representation is received within this period, it will be presumed that they have no objections to the proposal.
Next Steps
The tribunal has fixed October 28, 2026, as the date for the next hearing. The petitioner must also publish notices in Business Standard (English) and Makkal Kural (Tamil) newspapers, along with filing affidavits evidencing proof of service and publication within seven days.
Historical Stock Returns for DIGJAM
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.46% | +4.82% | +7.80% | +23.83% | -7.98% | 0.0% |
How will the demerger of Reid & Taylor International Private Limited impact Digjam Limited's consolidated revenue streams and operational focus?
What potential objections might SEBI or tax authorities raise during the 30-day representation window, and how could this delay the October 28 hearing?
How is the market expected to value the standalone entities post-demerger compared to their current combined valuation?
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