Bikaji Foods & Vindhyawasini Sales Unite: NCLT Approval Sets Stage for Sweeter Success

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Bikaji Foods International Limited has received approval from the National Company Law Tribunal (NCLT), Jaipur Bench, for the Scheme of Amalgamation with its wholly owned subsidiary, Vindhyawasini Sales Private Limited (VSPL). This strategic move marks a significant milestone in Bikaji’s ongoing efforts to consolidate operations and enhance business efficiency.

Key Highlights:

The NCLT, Jaipur Bench, has dispensed with the need for separate meetings of shareholders and creditors for both Bikaji Foods and Vindhyawasini Sales, expediting the amalgamation process.
The approved scheme, filed under Sections 230-232 of the Companies Act, 2013, facilitates the merger of VSPL into Bikaji Foods as a going concern, with no new shares issued or cash consideration paid for the cancellation of VSPL’s equity shares and optionally convertible debentures.
The amalgamation is expected to simplify Bikaji’s corporate structure, optimize resource allocation, and unlock synergies across manufacturing, sales, and distribution.

This move follows Bikaji’s ongoing strategy of backward integration and expansion, including recent acquisitions and the incorporation of new subsidiaries in the bakery and frozen foods segment.

The company continues to demonstrate robust financial performance, with a 40% year-on-year increase in net profit for Q1 FY25 and a 73% share price return over the past six months.

The next NCLT hearing on the scheme is scheduled for February 18, 2025, with the company poised to integrate VSPL’s operations fully upon final approval.

Source: Bikaji Foods International Limited Corporate Filings, NCLT Orders, Company Website