The National Company Law Tribunal (NCLT), Ahmedabad Bench, has approved the scheme of amalgamation of Lincoln Parenteral and Lincoln Pharmaceuticals under Sections 230 to 232 and other applicable provisions of the Companies Act, 2013. The amalgamation is expected to bring lot of synergies in terms of operations efficiency, enhance competitive strength, cost-effectiveness and productivity for the combined entity, said Lincoln Pharmaceuticals in a statement.
The order sanctioning the scheme was pronounced on 14th September, 2021 and uploaded on the website of NCLT on 15th September, 2021. Further, the appointed date of the scheme is 1st April, 2019. The scheme will be effective upon filing of the certified copy of the order of the NCLT with the Registrar of Companies, Gujarat, added the statement.
According to the statement, Lincoln Parenteral is a subsidiary company of Lincoln Pharmaceuticals engaged in the business of small parenteral injection products. For the year ending March 2021, Lincoln Parenteral reported a turnover of Rs 44.64 crores and the net profit of Rs 1.84 crores. Lincoln Pharmaceuticals holds 98.58 per cent in Lincoln Parenteral as of March 2021.
Commenting on the development, Mahendra Patel, Managing Director, Lincoln Pharmaceuticals, said, “The corporate restructuring practice will bring a lot of synergies for both the companies 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.”
The statement notified that during FY20-21, Lincoln Pharmaceuticals had filled petition with NCLT, Ahmedabad Bench for the approval of the scheme of amalgamation of Lincoln Parenteral (“Transferor Company”) with Lincoln Pharmaceuticals (“Transferee Company”) and their respective shareholders and creditors.