Ashika Credit Capital Limited (ACCL) has taken a significant step towards corporate restructuring by filing a combined application for a Composite Scheme of Amalgamation with the National Company Law Tribunal (NCLT), Kolkata Bench. The scheme proposes the merger of two private limited companies into ACCL, marking a notable development in the company's strategic direction.

Key Details of the Amalgamation Scheme

The Composite Scheme of Amalgamation involves the following entities:

1. Ashika Commodities & Derivatives Private Limited (ACDPL)
2. Ashika Global Securities Private Limited (AGSPL)
3. Ashika Credit Capital Limited (ACCL)

Under the proposed scheme, ACDPL, a wholly-owned subsidiary of AGSPL, will merge with AGSPL. Subsequently, AGSPL will amalgamate with ACCL, the ultimate amalgamated company.

Regulatory Approvals and Timeline

The journey towards this amalgamation has involved several key milestones:

• The Board of Directors of Ashika Credit Capital Limited approved the amalgamation scheme.
• The Reserve Bank of India (RBI) provided its 'No Objection' to the proposed scheme.
• BSE Limited issued 'no adverse observations' on the scheme.
• ACCL filed the combined application with the NCLT, Kolkata Bench.

Next Steps and Pending Approvals

While significant progress has been made, the scheme's implementation remains subject to various statutory and regulatory approvals. These include:

1. Approval from the National Company Law Tribunal
2. Consent from the respective shareholders and creditors of the companies involved
3. Any other applicable regulatory approvals

Implications and Outlook

This amalgamation, if approved, could potentially streamline operations, enhance efficiency, and create a more robust corporate structure for Ashika Credit Capital Limited. However, stakeholders should note that the final implementation is contingent upon the pending approvals.

Ashika Credit Capital Limited has assured that it will continue to keep the market informed of any significant developments regarding this corporate action. Investors and stakeholders are advised to monitor official communications from the company for further updates on the progress of this amalgamation scheme.

Ashika Credit Capital Limited (ACCL) has taken a significant step forward in its corporate restructuring plans, receiving a letter with 'no adverse observations' from BSE Limited regarding its proposed composite scheme of amalgamation. This development marks a crucial milestone in the company's strategic initiative to streamline its operations and potentially enhance shareholder value.

Details of the Amalgamation Scheme

The composite scheme of amalgamation involves a two-step process:

1. Merger of Ashika Commodities & Derivatives Private Limited (ACDPL) with Ashika Global Securities Private Limited (AGSPL).
2. Subsequent amalgamation of AGSPL with Ashika Credit Capital Limited (ACCL).

It's worth noting that ACDPL is a wholly-owned subsidiary of AGSPL, which adds an additional layer of corporate simplification to the process.

Timeline and Approvals

• The Board of Directors of ACCL approved the composite scheme of amalgamation.
• ACCL received the letter with 'no adverse observations' from BSE Limited.

Regulatory Compliance

The disclosure of this development was made under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The application for the scheme was submitted under Regulation 37A of the same SEBI regulations.

Next Steps

While the BSE approval is a significant milestone, the scheme still requires several additional approvals before it can be implemented:

1. Various statutory and regulatory approvals
2. Approval from respective shareholders of the companies involved
3. Approval from creditors of the companies involved

Transparency Measures

In line with corporate governance best practices, ACCL has made the BSE approval letter available on the company's website ( www.ashikagroup.com ) for public access.

Conclusion

The receipt of BSE approval for the composite amalgamation scheme represents a positive step for Ashika Credit Capital Limited in its efforts to restructure and potentially optimize its corporate structure. However, investors and stakeholders should note that the process is still ongoing, with several crucial approvals yet to be obtained before the amalgamation can be finalized.