ICL Foundries set to merge with parent firm

Sambit Datta

Mumbai, Aug 26: ICL Foundries Ltd (ICLF), a wholly-owned subsidiary of TVS Electronics, is set to merge with its parent company. This process would ensure that the company can utilise the ICL land for its future space requirements.

ICLF owns 6.18 acres of land at Nandambakkam near Guindy, Chennai. The directors of ICLF have proposed to amalgamate the company with TVS Electronics ever since it was felt by boards of the respective companies that the assets of the subsidiary company can be effectively used by the company for locating its factory and other establishments under one umbrella.

This would enable the companies to pool material and financial resources to meet the challenges and problems which confront the business at present, besides ensuring administrative simplicity, operational synergies and cost savings.

Since, the entire share capital of the subsidiary company is held by TVS Electronics, the share capital of the subsidiary company would stand automatically cancelled upon the amalgamation becoming finally effective. The subsidiary company would be dissolved without the process of winding up.

According to TVS Electronics chairman Venu Srinivasan, “The proposed amalgamation would not affect the interests of shareholders of the company as no new shares were sought to be issued. Similarly, the interests of the creditors of the company are not likely to be affected by the proposed amalgamation.”

TVS Electronics is also set to launch its Retail Computer System products.

The product is expected to contribute to revenues from the second half of the current year. To meet the operating and investment needs, the company had availed loans from financial institutions and banks to the extent of Rs 11.74 crore.