UNO Minda has successfully concluded the compensation process for fractional share entitlements arising from its recent amalgamation scheme. This development marks a significant milestone in the company's corporate restructuring efforts.

Amalgamation Details

The scheme involved the merger of three transferor companies with UNO Minda:

1. Kosei Minda Aluminum Company Private Limited
2. Kosei Minda Mould Private Limited
3. Minda Kosei Aluminum Wheel Private Limited

The National Company Law Tribunal (NCLT), New Delhi Bench, approved the scheme on December 18, 2024, which became effective on January 29, 2025.

Share Allotment and Exchange Ratio

On August 6, 2025, UNO Minda allotted 2,81,974 equity shares of INR 2 each, based on the following exchange ratios:

Fractional Share Treatment

A sole shareholder became entitled to 0.86 fractional shares, which was rounded off to 1 equity share. The company directly allotted this fractional entitlement to the eligible shareholder on October 28, 2025, well within the required 90-day timeline from the allotment date.

Regulatory Compliance

Both the Audit Committee and Independent Directors of UNO Minda have certified the proper compensation of fractional entitlements. This certification ensures compliance with the Securities and Exchange Board of India (SEBI) regulations, specifically the SEBI Master Circular No. SEBI/HO/CFD/POD-2/P/CIR/2023/93 dated June 20, 2023.

Conclusion

The completion of this process demonstrates UNO Minda's commitment to transparent and efficient corporate governance. It also marks the successful integration of the transferor companies, potentially streamlining operations and enhancing shareholder value.

UNO Minda 's step-down subsidiary, Mitil Polymer Private Limited (MPPL), is facing a tax demand of Rs 48.06 lakh from the Maharashtra State Tax Office. The demand stems from an alleged excess claim of Input Tax Credit for the financial year 2019-20.

Tax Demand Breakdown

The order breaks down the demand as follows:

Company's Response

Uno Minda has stated that MPPL intends to contest the order based on the merits of the case. In its disclosure to the stock exchanges, the company emphasized that it does not foresee any material impact on its financial, operational, or other activities arising from this matter.

Regulatory Compliance

The disclosure was made in compliance with Sub-Para 20 of Para A of Part A of Schedule III of SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015. This regulation requires listed entities to disclose any action taken by regulatory or statutory authorities that may have a bearing on the company's operations.

Implications for Investors

While the tax demand is significant, Uno Minda's assertion of no material impact suggests that the company is well-positioned to handle the situation. However, investors should keep an eye on the progress of MPPL's contest against the order, as the outcome could provide insights into the company's tax management practices and potential future liabilities.

As the case unfolds, it will be crucial to monitor any updates from Uno Minda regarding the resolution of this tax matter and its potential implications on the company's financial statements in the coming quarters.