PPAP Automotive Receives NCLT Order to Convene Meetings for Avinya Batteries Merger

PPAP Automotive Limited has informed the stock exchanges that the National Company Law Tribunal (NCLT), New Delhi Bench (Court-VI), has issued directions in connection with the proposed amalgamation of its wholly owned subsidiary, Avinya Batteries Limited, with the company.

The order, passed under Sections 230 to 232 of the Companies Act, 2013, outlines the meetings that must be convened for shareholders and creditors to consider and approve the proposed Scheme of Amalgamation.

Key Highlights of the NCLT Order

The Tribunal has issued the following directions regarding the merger process:

• Avinya Batteries Limited (Transferor Company):
  • The requirement to convene a meeting of the shareholders has been dispensed with.
  • Meetings of the company’s secured creditors and unsecured creditors are required to be convened.
• PPAP Automotive Limited (Transferee Company):
  • Meetings of the company’s shareholders, secured creditors, and unsecured creditors have been directed to be convened for considering the proposed Scheme of Amalgamation.

These meetings will form an important part of the approval process before the merger can be implemented.

Strategic Purpose of the Amalgamation

The proposed merger is aimed at integrating the operations of PPAP Automotive Limited and its wholly owned subsidiary, Vinyl Batteries Limited, to strengthen the group’s business structure and leverage synergies across their respective operations.

About the Companies

PPAP Automotive Limited is a leading manufacturer of automotive sealing systems and interior as well as exterior injection-moulded products supplied to original equipment manufacturers (OEMs) in the automotive industry.

Avinya Batteries Limited, a wholly owned subsidiary of PPAP Automotive, is engaged in the manufacturing of lithium-ion (Li-ion) battery pack solutions for electric two-wheelers and three-wheelers. The company also develops battery solutions for energy storage systems (ESS) and various industrial power applications.

Next Steps

Following the NCLT’s directions, PPAP Automotive will initiate the necessary regulatory process to convene the meetings of its shareholders and creditors, as well as the creditor meetings of Vinyl Batteries Limited.

The company has stated that it will continue to keep the stock exchanges informed regarding further developments in the merger process and any significant milestones achieved under the Scheme of Amalgamation.