Logistics firm Gati has moved a step further in its exercise to bring into its fold a few of its wholly-owned subsidiaries.
The Andhra Pradesh High Court has approved the Scheme of Arrangement for amalgamation of five wholly-owned subsidiaries with the parent company, Gati.
The High Court has also held in its order that Gati need not file any application for the scheme of amalgamation, the company said in a filing with the BSE today.
The five subsidiaries include Gati Express Distribution Ltd and Sumeru Commercial & Trading Pvt Ltd.
The amalgamation is expected to enable Gati to bring in better financial capabilities and result in an enhanced shareholder value.
Gati will also have in its fold diversified businesses, which would enable it to manage risks in a better way, it said.