The Ahmedabad bench of National Company Law Tribunal (NCLT) has approved the scheme of amalgamation of Lincoln Parenteral Ltd and Lincoln Pharmaceuticals Ltd.

The amalgamation is expected to bring synergies in terms of operations efficiency, enhance competitive strength, cost-effectiveness and productivity for the combined entity, company said in a statement on Thursday. The order sanctioning the scheme was pronounced on September 14, 2021. The appointed date of the scheme is April 01, 2019.

Lincoln Parenteral Ltd is subsidiary company of Lincoln Pharmaceuticals Ltd engaged in the business of small Parenteral Injection Products. Lincoln Pharmaceuticals Ltd holds 98.58 per cent stake in Lincoln Parenteral Ltd as on March 2021. For the year ended March 2021, Lincoln Parenteral reported turnover of ₹44.64 crore with net profit of ₹1.84 crore.

Also read: ‘NCLT cannot allow changes to successful resolution plan’

Mahendra Patel, Managing Director, Lincoln Pharmaceuticals Limited said, “The corporate restructuring practice will bring a lot of synergies for the both the company and will lead to increased competitive strength, cost reduction and efficiencies, productivity gains, and logistic advantages, thereby significantly contributing to future growth.”

The scheme of amalgamation, approved under Sections 230 to 232 and other applicable provisions of the Companies Act, 2013, will be effective upon filing of certified copy of the order of the NCLT with the Registrar of Companies, Gujarat.

In fiscal 2020-21, Lincoln Pharmaceuticals Ltd had filed a petition with the Ahmedabad Bench of NCLT to approve the scheme of amalgamation of Lincoln Parenteral Limited with Lincoln Pharmaceuticals Limited and their respective Shareholders and Creditors. Lincoln Pharmaceuticals shares traded positive at ₹394.35 on BSE Thursday.

Related Topics