3M India – NCLT approves Scheme of Amalgamation

The industrial equipment company 3M India Ltd. (3M India), a division of 3M Co., is focused on designing, producing, and distributing a variety of tools and services to suit a broad spectrum of market needs. Its product line consists of consumer goods, adhesives, automobile fillers, coatings, tamper-evident labels, and medical devices. The market segments served by the company include industrial, transportation, healthcare, electronics and communications, display and graphics, consumer and office, safety, and security. Key brands include Command, Littmann, Post-it, Nexcare, Scotch-Brite, and Scotch. 3M India is based in Bangalore, Karnataka, India, and has offices in Mumbai, Gujarat, Pune, Kolkata, Hyderabad, and Chennai.

3M India: NCLT approves Scheme of Amalgamation:

The Bangalore branch of NCLT has approved the merger of 3M India’s wholly-owned subsidiary, 3M Electro & Communications, the company said in a communication to the stock exchange today.  The merger plans of 3M Electro & Communications India Private Limited and 3M India Limited were approved by the Bangalore Bench of the National Company Law Tribunal (NCLT) on August 27, per Sections 230–232 of the Companies Act 2013. The merger is expected to bring about synergies and efficiencies that will benefit both companies and their stakeholders.

The NCLT set April 1, 2023, as the scheme’s implementation date. According to the company, the plan will be put into action following the order copy’s submission to the Karnataka Registrar of Companies.

3M India recent quarter results:

This month, the company released its quarterly results. In comparison to the previous year, the company’s consolidated net sales for the June quarter dropped from Rs. 105 crore to Rs. 1047 crore. In the meantime, the quarter’s profit of Rs 157.15 crore has grown by 22%. Earnings before interest, taxes, depreciation, and amortization, or EBITDA, increased by 21% to Rs 227 crore from the previous year. The company now has an EPS of Rs 139.5, up from Rs 114.7.

More than a 1% rally in 3M India stock today:

Today, 3M India stock is currently trading at Rs. 35,626.95 per share, showing an increase of more than 1% in the intraday segment.

Conclusion: Due to this merger decision between 3M Electro & Communications India Private Limited and 3M India Limited to enhance their business operations and maximize value for their shareholders.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.