Pritika Auto Industries shares climb 5% as NCLT approves demerger

Shares of Pritika Auto Industries Ltd surged more than 5 per cent during the trading session on Wednesday after the company received an approval from the Chandigarh bench of National Company Law Tribunal (NCLT) for the demerger. The company informed about the same through an exchange filing on Tuesday. The Chandigarh bench of the National Company Law Tribunal (NCLT) vide its order dated December 4, 2023 has granted approval for the scheme of arrangement between Pritika Industries (PIL), the demerged company and Pritika Auto Industries (PAIL), the resulting company) and their respective shareholders, under Sections 230 to 232 of companies Act, 2013, said the company in filing. Pritika Auto Industries will be spinning off its automotive, tractor and engineering components business undertaking via the demerger of Pritika Industries. The resultant entity will continue to be engaged in the business of manufacturing and  selling of tractor's and other automotive parts, components & engineering goods.  The company has also announced the swap ratio for the demerger. As of record date, which shall be announced later, investors holding atleast 63 equity shares of Pritika Auto Industries with a face value of Rs 2 each, shall be awarded with 10 equity shares of Pritka Industries Ltd, with a face value of Rs 10 each. Following the announcement, shares of Pritika Auto Industries rose more than 5 per cent to Rs 32.34 on Wednesday, compared to its previous close at Rs 30.77 in the previous trading session on Tuesday. The stock has delivered a return of 150 per cent from its 52-week low at Rs 13.10 in March 2023. The listing application for listing of shares of Pritika Auto Industries Limited on allotment of equity shares to the shareholders of Pritika Industries Limited will be made in due course of time, added the exchange filing.

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Pritika Auto Industries, through a separate exchange filing, informed the bourses that it will be hosting its annual general meeting (AGM) on Friday, December 29 through video conferencing and other audio-visual means to consider and approve a number of resolutions.

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