NCLT Orders Directions in Avinya Batteries Limited Merger with PPAP Automotive Limited
The National Company Law Tribunal (NCLT) has issued specific orders regarding the ongoing Scheme of Amalgamation between Avinya Batteries Limited and PPAP Automotive Limited. The order, pronounced on July 29, 2026, sets out crucial directions concerning shareholder and creditor meetings for both companies, addressing the consent status for various stakeholders.The scheme involves the amalgamation of Avinya Batteries Limited (the Transferor Company) into PPAP Automotive Limited (the Transferee Company). The Applicant Companies had previously approved the proposed Scheme of Amalgamation during board meetings held on May 5, 2026, and May 11, 2026.
The NCLT ordered that while the meeting of Shareholders for Avinya Batteries Limited is dispensed with due to consent affidavits received from all its equity shareholders, certain creditor meetings must be convened for both companies. For PPAP Automotive Limited, as no consent was obtained from any of its stakeholders, a series of meetings involving its shareholders and creditors must be held.
The tribunal's directions detailed the composition of stakeholders and the resulting obligations to convene meetings:
| Stakeholder Group | Company | Number | Consent Status | Required Action |
|---|---|---|---|---|
| Equity Shareholders | Avinya Batteries Limited | 7 | 100% consent obtained | Meeting dispensed with |
| Secured Creditors | Avinya Batteries Limited | 4 | No consent | Meeting must be convened |
| Unsecured Creditors | Avinya Batteries Limited | 66 | No consent | Meeting must be convened |
| Equity Shareholders | PPAP Automotive Limited | 15,675 | No consent | Meeting must be convened |
| Secured Creditors | PPAP Automotive Limited | 9 | No consent | Meeting must be convened |
| Unsecured Creditors | PPAP Automotive Limited | 653 | No consent | Meeting must be convened |
Avinya Batteries Limited, which was incorporated on January 1, 2015, manufactures Li-Ion based Battery pack solutions for the two-wheeler and three-wheeler industry, alongside energy storage systems. PPAP Automotive Limited, incorporating since 1995, focuses on manufacturing sealing systems and injection moulded products for the automotive industries.
The NCLT directives stipulated that the companies must issue necessary notices and take all required steps to conduct the meetings of Secured Creditors and Unsecured Creditors as mandated by the order. The appointed date specified in the Scheme was April 1, 2026.
PPAP Stock Price Movement
Today, PPAP Automotive Limited shares edged higher to settle at ₹281.70, rising 1.14% or ₹3.22 in the market session. The equity saw moderate activity, with a total of 15,304 shares traded during the day.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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