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Tag: nclt

  • Pine Labs receives Singapore Court nod to shift base to India

    Pine Labs receives Singapore Court nod to shift base to India

    Payments firm Pine Labs has received approval from a Singapore court to merge its India and Singapore entities, Pine Labs Limited (PLS) and Pine Labs Private Limited (PLI).

    This move is aimed for Singapore-based Pine Labs, to move its domicile to India. Meanwhile, its application for a reverse merger is under consideration at the National Company Law Tribunal (NCLT).

    The whole undertaking of Pine Labs Limited including all assets and liabilities shall be transferred and vested in PLI according to the amalgamation agreement, according to regulatory filing in Singapore.

    All the shareholders of Singapore entity will become Pine Labs Private Limited (PLI) shareholders and any pending legal proceedings against PLS shall be continued by PLI after the arrangement.

    The filing further states that following the National Company Law Tribunal (NCLT) order filed with the Registrar of Companies, the Singapore entity shall be dissolved without undergoing winding up.

    Pine Labs has become the third fintech company after PhonePe and Groww which relocated its domicile to India from overseas. Currently, various start-ups including KreditBee, Razorpay, Meesho, and Zepto have been working on shifting their ultimate holding entities to India.

    All companies are also trying to assess the tax payout–in India or abroad–for these mergers.

    In April, US-based investment firms Baron Funds and Invesco marked up the valuation of Pine Labs to $5.8 billion and $4.8 billion, respectively. It’s worth noting that the valuation plays a crucial role in deciding the quantum of tax liabilities for shifting the domicile.

    Of late, fintech companies have been laying emphasis to be headquartered in India as regulators’ job become easier as far as diligence and monitoring are concerned. However, the reverse flips require hefty tax liabilities. For context, PhonePe’s investors paid ₹8,000 crore in taxes to complete the process.

    While PhonePe shifted its domicile to India in October 2022, wealth management startup Groww announced the completion of its move on May 9.

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  • Lenders approve Hinduja Group’s ₹9,661-crore resolution plan for RCap

    Lenders approve Hinduja Group’s ₹9,661-crore resolution plan for RCap

    The committee of creditors (CoC) of Reliance Capital has approved the resolution plan put forth by IndusInd International Holding, with 99 per cent lenders voting in favour of the plan, sources told businessline.

    Hinduja Group had submitted a bid of ₹9,661 crore, all of which will be paid as upfront cash to acquire Reliance Capital and its subsidiaries. This will be in addition to the cash reserve of about ₹400 crore that RCap has generated by way of loan recoveries, among other avenues, a source said.

    Accordingly, lenders of RCap will receive about ₹10,000 crore against principal outstanding dues of ₹16,000 crore, translating to a recovery of around 65 per cent. Voting on the resolution plan began on June 9 and concluded on Thursday. The plan will now be submitted for approval of the National Company Law Tribunal (NCLT) in 7-10 days, they added. The deadline to file the final resolution plan with NCLT is July 15.

    Hinduja Group via IndusInd International Holdings, was the sole bidder in the extended challenge mechanism for resolution of RCap, submitting a bid of ₹9,650 crore, which included a proposal to infuse ₹300 crore in Reliance General Insurance. The CoC had, in May, voted in favour of equal distribution of proceeds between all members, regardless of whether they are in favour of the resolution plan.

    Meanwhile, Reliance Capital has approached the Supreme Court with the details of the second auction as per the requirements of the pending litigation against Torrent Investments which had alleged preference to the Hinduja Group and had objected to holding the second round of the challenge mechanism.

    The apex court is expected to next hear the case in August; however, with the resolution plan being finalised, the CoC has approached the SC for a hearing sooner than scheduled, businessline had previously reported.

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  • NCLT approves merger of HDFC with HDFC Bank

    NCLT approves merger of HDFC with HDFC Bank

    The National Company Law Tribunal (NCLT) approved the merger of Housing Development Finance Corporation (HDFC), HDFC Investments and HDFC Holdings with HDFC Bank on Friday.

    The board of the two companies had approved the merger in April 2022, following which it has received the approval of the Reserve Bank of India (RBI), Securities and Exchange Board of India (SEBI), Pension Fund Regulatory and Development Authority (PFRDA), Competition Commission of India (CCI) and stock exchanges.

    NCLT also approved holding a shareholders’ meeting for obtaining approval for the proposed merger, which is expected to be completed by Q3FY24.

    Under the scheme of amalgamation, HDFC’s shareholders will receive 42 shares of HDFC Bank for 25 shares of HDFC. Post the merger, HDFC Bank will be wholly-owned by public shareholders, with HDFC shareholders owing 41 per cent stake.

    Further, HDFC Bank on Friday, allotted 7.9 lakh shares to its employees under the Employees Stock Options Scheme. The share capital of the bank now stands at Rs 558 crore.

    Meanwhile, the board of HDFC said it will meet on March 27 to consider raising up to Rs 57,000 crore, through the issue of unsecured redeemable nonconvertible debentures, in various tranches.

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