NewsCorporate ActionsMangalam Drugs & Organics' Merger Scheme Receives Strong Backing from Unsecured CreditorsMangalam Drugs & Organics' Merger Scheme Receives Strong Backing from Unsecured Creditors
Mangalam Drugs & Organics Limited's proposed merger scheme gained overwhelming support from unsecured creditors at a Tribunal Convened Meeting. The scheme, involving the absorption of Mangalam Laboratories Private Limited and Shri JB Pharma Private Limited, received 98.46% approval in value terms. Out of 80 eligible creditors, 36 participated, with 37 voting in favor and 1 against. The Board of Directors is now authorized to proceed with implementing the merger, subject to regulatory approvals.
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Mangalam Drugs & Organics Limited , a prominent player in the pharmaceutical industry, has taken a significant step towards corporate restructuring. The company's proposed merger scheme received overwhelming support from its unsecured creditors during a Tribunal Convened Meeting (TCM) held on August 12, 2025.
Merger Approval Details
The TCM, conducted via video conferencing, saw a strong turnout of unsecured creditors voting on the resolution for the Scheme of Merger by Absorption. The scheme proposes the merger of Mangalam Laboratories Private Limited and Shri JB Pharma Private Limited with Mangalam Drugs and Organics Limited.
Voting Results
The voting results demonstrated a resounding approval for the merger:
| Particulars | In Favor | Against |
|---|---|---|
| Number of Creditors | 37 | 1 |
| Value of Votes (₹ in crore) | 273.80 | 4.28 |
| Percentage | 98.46% | 1.54% |
Out of the 80 total unsecured creditors eligible to vote as of the December 31, 2024 cut-off date, 36 participated in the meeting. The strong support for the merger is evident, with 98.46% of the voting value backing the resolution.
Scrutinizer's Report
Shri Venugopal Prasad Rao, appointed as the scrutinizer by the National Company Law Tribunal (NCLT) Mumbai Bench, oversaw the voting process. The scrutinizer's report confirmed the validity of the voting procedure, which included both remote e-voting and e-voting during the meeting.
Management's Authorization
Following the successful vote, the Board of Directors of Mangalam Drugs & Organics Limited has been authorized to take necessary steps to implement the merger scheme. This includes accepting any modifications or conditions that may be imposed by regulatory authorities during the sanction process.
Implications and Next Steps
The strong backing from unsecured creditors marks a crucial milestone in Mangalam Drugs & Organics' corporate restructuring efforts. The merger is expected to streamline operations, potentially leading to improved efficiencies and synergies across the merged entities.
The company will now proceed to seek final approvals from the NCLT and other relevant statutory bodies to complete the merger process. Shareholders and stakeholders will be keenly watching the developments as the company moves forward with its strategic restructuring plans.
As Mangalam Drugs & Organics Limited progresses with this significant corporate action, it reinforces the company's commitment to growth and value creation for all its stakeholders in the competitive pharmaceutical landscape.
Historical Stock Returns for Mangalam Drugs & Organics
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.24% | -3.78% | -6.36% | -9.19% | -43.38% | -48.52% |
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