Khadim India's Scheme of Arrangement with KSR Footwear Gets NCLT Approval

National Company Law Tribunal (NCLT), Kolkata Bench, has approved the Scheme of Arrangement between Khadim India Ltd and KSR Footwear, marking the path towards business restructuring and operational efficiency. The approval comes after a hearing on November 29, 2024, when the stakeholders considered the demerger proposal aimed at enhancing the market positions of both the companies.

 

Key Highlights:

 

✅ NCLT Approval: The court approved the Scheme of Arrangement, enabling Khadim India to demerge its distribution business into KSR Footwear.

✅ Strategic Restructuring: The action will allow both firms to concentrate on their core businesses, enhancing operational efficiency and financial health.

✅ Shareholder & Creditor Impact: The scheme provides for shareholders and creditors, ensuring equitable treatment and adherence to regulatory standards.

✅ Reaction in the market: Khadim India shares rose by 4%, evidencing investor belief in the restructuring plan.

✅ Plans for future growth: The demerger will lead to increased visibility of the brands, efficient supply chain operations, and improved profitability for both parties.

 

Through this strategic restructuring, Khadim India and KSR Footwear hope to bolster their market positions, guaranteeing long-term growth and operational efficiency.

 

Source: Economic Times, Finance Saathi