The National Company Law Tribunal’s (NCLT) Mumbai bench has given the nod for the merger of Mahindra Heavy Engines (MHEL), Mahindra Two Wheelers (MTWL), and Trringo.com (TCL) with Mahindra and Mahindra Limited, as announced by M&M Ltd in a statement on May 7. The order from the NCLT, pronounced on Tuesday, follows the last hearing held on April 5 this year.
According to the terms of the merger, the entirety of assets and liabilities of MHEL, MTWL, and TCL will be transferred to Mahindra and Mahindra Limited at their current carrying values, as outlined in a stock exchange filing by M&M.
M&M further elaborated, stating, “The entire share capital of the transferor companies is held by the company (directly and jointly with the nominee shareholders). Upon the Scheme becoming effective, no shares of the Company shall be allotted in lieu or exchange of the holding of the company in the transferor companies.”
Mahindra Heavy Engines specializes in the manufacturing and distribution of engines and other automotive components catering to vehicles and genset applications, while Mahindra Two Wheelers deals in parts essential for a range of two-wheelers, passenger light motor vehicles, and commercial vehicles manufactured and distributed by the company.
Meanwhile, Trringo.com was involved in the organized farm equipment rentals through a franchisee-based model, as detailed in the company statement. This merger is anticipated to simplify the holding structure, streamline management processes, and reduce operating and administrative costs, according to the company.
As of March 31, 2023, MHEL boasted a paid-up capital of Rs 634.4 crore and a net worth of Rs 749.91 crore. MTWL reported a paid-up capital of Rs 82.82 crore and a net worth of Rs 241.06 crore, whereas TCL had a net worth of Rs 1.92 crore and a paid-up capital of Rs 27.46 crore, as indicated in the exchange filing.