NCLT Sanctions Amalgamation of DVS Industries with MM Forgings Ltd, Approving Scheme for Operational Synergies

NCLT Sanctions Amalgamation of DVS Industries with MM Forgings Ltd, Approving Scheme for Operational Synergies​

The National Company Law Tribunal (NCLT), Chennai Bench, has approved the Scheme of Amalgamation involving DVS Industries Private Limited and M M Forgings Limited. The approval streamlines the corporate structure following a hearing conducted on June 19, 2026. This move involves the amalgamation of DVS Industries Private Limited, a wholly-owned subsidiary (Transferor Company), with M M Forgings Limited (Transferee Company).

The Scheme provides for the complete integration of operations between the two entities. The rationale behind the amalgamation includes achieving synergies in various projects through resource utilization, simplifying the corporate structure, realizing economies of large scale and reduced operating costs, and diminishing managerial overlaps to enhance operational efficiency. Post-amalgamation, the Transferor Company will stand dissolved, leading to a reduction in administrative costs related to statutory and internal audit requirements.

Statutory authorities reviewed the proposed Scheme of Amalgamation. The Regional Director (RD), Southern Region, expressed 'Observations' and subsequently conveyed 'No Objection.' Similarly, the Income Tax Department conveyed no objection to the scheme, subject to certain conditions relating to pending liabilities and carried-forward losses. Furthermore, the Official Liquidator provided ‘Observations’ and 'No Objection,' noting compliance requirements regarding employee protection and documentation standards for both companies.

Financial and Operational Integration Details​

The amalgamation represents a significant consolidation of resources and capital structure. Prior to the Scheme coming into effect, DVS Industries Private Limited possessed an authorized share capital of Rs. 2,50,00,000 divided into 2,50,000 Equity Shares of Rs. 100/- each.

Following the amalgamation, M M Forgings Limited will see its authorized share capital significantly expanded, with the revised structure being Rs. 53,50,00,000 divided into 5,35,00,000 Equity Shares of Rs. 10/- each.

The approval from the NCLT was granted after considering reports and submissions from all statutory authorities, including the Income Tax Department’s finding that M M Forgings Limited has an outstanding demand in the amount of Rs. 2,58,81,260/ across three assessment years:


The NCLT Tribunal sanctioned the Scheme of Amalgamation on the basis that it is not detrimental to the interest of any members and fulfills requisite statutory compliances. The Tribunal specified the 'Appointed Date' for the Scheme as April 1, 2024, noting that this date was consciously adopted to reflect the commencement of the financial year.

The company is now undertaking processes to obtain certified copies of the orders from NCLT before implementing the scheme, which will come into effect upon filing these certified copies with the Registrar of Companies, Ministry of Corporate Affairs.

MMFL Stock Price Movement​

Shares of MM Forgings Limited are trending upward to ₹457.2 as of 11:59 AM, gaining ₹0.95 or 0.21% in live trading. The stock remains volatile during the session, having touched a high of ₹462 and testing lows down to ₹455.95 today.