ABB India Gets NCLT Nod For Demerger Of Power Grid Arm To ABB Power Products
The proposed demerger is expected to assist the current power grids division, ABB India had said in an exchange filing in March.
The Bengaluru Bench of the National Company Law Tribunal has approved demerger of ABB India Ltd.'s power grid business to ABB Power Products and Systems India Ltd.
"The Bengaluru Bench of the National Company Law Tribunal vide its order dated Nov. 27, 2019, sanctioned the said scheme involving the demerger of the power grids business of the company to APPSIL under the provisions of Sections 230-232 and other applicable provisions of the Companies Act, 2013," according to ABB India said in a regulatory filing on Thursday.
The scheme will be effective upon filing the certified copy of the order of NCLT with the Registrar of Companies, the filing added.
In March, ABB India had in a regulatory filing said that "the proposed demerger is expected to assist the current power grids division to pursue the business excellence built over a long period in the power infrastructure with its robust and time tested business model."
On Thursday, ABB India shares rose 0.58 percent to Rs 1,447.00 apiece on the BSE while the benchmark Sensex 0.27 percent to end the day at 41,130.17 points.