The NCLT, vide its order dated October 16, 2026, has sanctioned the Scheme of Amalgamation of Shree Venkateshwara Electrocast Private Limited (SVEPL) into Shyam Sel and Power Limited (SSPL), a wholly-owned subsidiary of Shyam Metalics. The merger is effective retroactively from the Appointed Date of April 1, 2024. Upon filing the certified copy of the NCLT order with the Registrar of Companies (ROC), West Bengal, SVEPL will be dissolved without winding up.

Key Highlights

  • Product Portfolio Integration: The amalgamation brings complementary product specializations under a single corporate umbrella, centralizing the Group's aluminium foil operations to enable operational efficiencies, enhanced supply chain coordination, and seamless market reach.
  • Capital Efficiency: No fresh equity shares will be issued or allotted since SVEPL was already a 100% wholly-owned subsidiary of SSPL; the existing share capital of SVEPL will stand cancelled upon implementation.
  • Balance Sheet Continuity: All assets, liabilities, contracts, and workforce of SVEPL will vest smoothly into SSPL, maintaining a robust balance sheet for the merged entity.

Financial Synergies

Under Section 72A of the Income-tax Act, 1961, the merger allows SSPL to absorb and set off the accumulated carried-forward business losses and unabsorbed depreciation of SVEPL, creating a comprehensive eligible tax shield. At the effective corporate tax rate applicable under Section 115BAA, this yields a substantial direct net tax benefit and immediate cash-flow savings for the combined entity. The Income Tax Department issued its No Objection Certificate (NOC) for the Scheme on May 15, 2026, considering the modified Appointed Date of April 1, 2024.

Management Commentary

Mr. Brij Bhushan Agarwal, Chairman & Managing Director of Shyam Metalics and Energy Limited, stated that the consolidation drives operational flexibility, eliminates redundant administrative layers, optimizes working capital, and provides immediate tax savings, directly adding value to earnings and cash flows.

Company Background

Shyam Metalics is a leading integrated metal-producing company in India, primarily in the steel industry, with operations in West Bengal, Odisha, Jharkhand, and Madhya Pradesh. It focuses on Long & Flat Steel Products, Ferro Alloys, Aluminium, and Stainless Steel, with a market capitalization of over ₹33,000 crore, aggregate installed metal capacity of 16.93 MTPA, and 467 MW aggregated installed capacity of captive power plants.

Contact Details

  • Shyam Metalics Contacts: Deepak Agarwal (Director Finance & CFO) at deepakag@shyamgroup.com or investor.relations@shyammetalics.com; Pankaj Harlalka at pankaj.harlalka@shyammetalics.com. Address: P-10 (Plate No. D-403), Taratala Road, Kolkata-700088, West Bengal, India.
  • Media Relations: Adfactors PR, Vikas Srivastava at vikas.srivastava@adfactorspr.com or 9867065257.
  • Investor Relations Advisers: Ernst & Young LLP, Diwakar Pingle (Head – Investor Relation Advisory) at Diwakar.Pingle@in.ey.com, Binay Sarda (Vice President) at Binay.sarda@in.ey.com.