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Informist, Monday, Mar. 16, 2026

 

--NCLT Ahmedabad approves Lyka Exports' merger with Lyka Labs

 

NEW DELHI – The Ahmedabad bench of the National Company Law Tribunal Monday approved the merger of Lyka Labs' subsidiary Lyka Exports Ltd. with itself. A detailed order on the same is awaited. 

 

Both the companies' business activities were similar and complemented each other, and hence the merger will help to achieve economies of scale and efficiency, stated the scheme of arrangement. The merger will help in greater integration and greater financial strength and flexibility for Lyka Labs, the amalgamated entity, which will result in maximising overall shareholder value and improve the competitive position of the combined entity.

 

The merger will improve efficiency in cash management of the amalgamated entity, and give unfettered access to cash flow generated by the combined business which can be deployed more efficiently to fund organic and inorganic growth opportunities and maximise shareholder value, as per the scheme. It will help the amalgamated company to have greater access to different market segments. Further, cost savings were expected to flow from more focused operational efforts, rationalisation, standardisation and simplification of business processes, and the elimination of duplication, and rationalisation of administrative expenses, stated the scheme. 

 

Lyka Exports is in the field of marketing and distributing generic pharmaceutical formulations in India and across various segments. Lyka Labs is engaged in the business of manufacturing and marketing pharmaceutical products. 

 

The investment held by Lyka Labs in the share capital of Lyka Exports shall stand cancelled, stated the scheme. Lyka Labs, subject to the approval of the Securities and Exchange Board of India, shall issue and allot a swap ratio based on the valuation report approved by the merchant banker to all equity shareholders of Lyka Exports whose names were in the register of members. 

 

At 1308 IST, shares of Lyka Labs were up 1.4% at INR 53.01 on the National Stock Exchange.  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Reported by Surya Tripathi

Edited by Tanima Banerjee

 

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