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Informist, Monday, Aug. 31, 2026

 

--NCLT approves demerging Abhinand Ventures' 'Essar' brand to Essar Power 

 

By Surya Tripathi

 

NEW DELHI – The Ahmedabad bench of the National Company Law Tribunal Monday approved the demerger of the 'Essar' brand undertaking of Abhinand Ventures Pvt. Ltd. into Essar Power Ltd. The tribunal also approved reducing and converting Essar Power's 500 million compulsory convertible preference shares into unsecured loans amounting to INR 8.75 billion. The difference between the fair value of the unsecured loan and its aggregate face value, amounting to INR 1.25 billion, shall be credited to capital reserve, which shall be adjusted against the retained earnings, the tribunal said.

 

Further, the tribunal said, 619.82 million fully paid-up equity shares of Essar Power, with a face value of INR 4 each, shall be issued and allotted to the eligible shareholders of Abhinand Ventures holding equity shares of INR 10 each. The appointed date for the scheme of amalgamation shall be Apr. 1, 2025, it said. 

 

According to the demerger scheme, reducing Essar Power's capital will help rationalise the corporate structure and reduce shareholding tiers. It will realign Essar Power's share capital to reflect both companies' commercial intent. The scheme said it will simplify Essar Power's capital structure, making future fundraising and compliance easier.

 

The demerger will create a centralised brand-owning platform within Essar Power, which, along with its power business, will own and license the "Essar" brand and related intellectual property rights to entities within the group in accordance with applicable law, the scheme said. The demerger will improve revenue and profitability for Essar Power and strengthen its financial position, it said.

 

Essar Power currently operates a 1-megawatt solar power plant and is a holding company for its energy assets. Essar Power holds a 100% stake in Essar Power Gujarat Ltd., which has installed thermal capacity of 1200 MW. Essar Power also holds a 100% stake in Essar Renewables Ltd. Essar Power is entering into the engineering, procurement and construction space for the various assets housed within it.

 

Abhinand Ventures owns, operates and manages the "Essar" brand business. The company licenses the brand and supports its enhancement and protection in India. It has approximately 150 Essar brand, green energy, and renewable energy variants registered with the trademarks department.  End

 

Edited by Saji George Titus

 

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