Amalgamation scheme of Lincoln Parenteral, Lincoln Pharma approved by NCLT
Ahmedabad: National Company Law Tribunal, Ahmedabad Bench, (NCLT) has approved the scheme of amalgamation of Lincoln Parenteral Ltd and Lincoln Pharmaceuticals Ltd under Sections 230 to 232 and other applicable provisions of the Companies Act, 2013.
Amalgamation is expected to bring lot of synergies in terms of operations efficiency, enhance competitive strength, cost-effectiveness and productivity for the combined entity. The order sanctioning the scheme was pronounced on September 14, 2021 and uploaded on the website of Hon'ble NCLT on September 15, 2021. Appointed date of the scheme is April 01, 2019. The scheme will be effective upon filing of certified copy of the order of the Hon'ble NCLT with the Registrar of Companies, Gujarat.
Lincoln Parenteral Ltd is subsidiary company of Lincoln Pharmaceuticals Ltd engaged in the business of small Parenteral Injection Products. For the year ended March 2021, Lincoln Parenteral reported turnover of Rs. 44.64 crore and Net profit of Rs. 1.84 crore. Lincoln Pharmaceuticals Ltd holds 98.58% in Lincoln Parenteral Ltd as on March 2021.
During FY20-21, Lincoln Pharmaceuticals Ltd had filled petition with Hon'ble National Company Law Tribunal (NCLT), Ahmedabad Bench for approval of the scheme of amalgamation of Lincoln Parenteral Limited ("Transferor Company") with Lincoln Pharmaceuticals Limited ("Transferee Company") and their respective Shareholders and Creditors.
Commenting on the development, Mr. Mahendra Patel, Managing Director, Lincoln Pharmaceuticals Limited, said, "The corporate restructuring practice will bring 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. We are confident to improve our growth numbers of revenue, margins and profitability in FY22. Our strategic growth initiatives, product and geographical expansion, operational efficiency and debt free status are likely to maximise value for all stakeholders in the near to medium term."
