NCLT Approves Merger of Shree Venkateshwara Electrocast into Shyam Sel and Power
New Delhi, October 23, 2026: The Kolkata Bench of the National Company Law Tribunal has approved the Scheme of Amalgamation of Shree Venkateshwara Electrocast Private Limited into Shyam Sel and Power Limited, a wholly-owned subsidiary of Shyam Metalics and Energy Limited, according to an official press release.
The order, issued on October 16, 2026, takes effect retroactively from the appointed date of April 1, 2024. Upon filing the certified copy of the tribunal order with the Registrar of Companies in West Bengal, Shree Venkateshwara Electrocast will be dissolved without winding up.
The strategic consolidation centralizes the group’s aluminum foil product operations under a single corporate entity, driving operational efficiencies and enhancing supply chain coordination. Because Shree Venkateshwara Electrocast was already a wholly-owned subsidiary of Shyam Sel and Power Limited, no new equity shares will be issued, and the existing share capital of the entity will be canceled. All assets, liabilities, contracts, and personnel will transfer into Shyam Sel and Power Limited.
The transaction also delivers significant financial synergies. Under Section 72A of the Income-tax Act, 1961, the merger permits Shyam Sel and Power Limited to set off the accumulated carried-forward business losses and unabsorbed depreciation of Shree Venkateshwara Electrocast, creating a tax shield that generates direct net tax savings and immediate cash-flow benefits. The Income Tax Department issued a No Objection Certificate for the scheme on May 15, 2026.
Brij Bhushan Agarwal, Chairman and Managing Director of Shyam Metalics and Energy Limited, said, “The Hon’ble NCLT approval for the consolidation of Shree Venkateshwara Electrocast into Shyam Sel and Power Limited marks a significant operational step forward. By unifying our manufacturing and marketing setup for value-added products like aluminium foil, we drive operational flexibility, eliminate redundant administrative layers, and optimize working capital. Additionally, the statutory set-off of accumulated losses provides a substantial immediate tax savings, directly adding value to our earnings and cash flows.”
