NSE Grants 'No Objection' on Scheme of Arrangement between Globe Enterprises and Morabia Creation Limited
Globe Enterprises (India) Limited, concerning its scheme of arrangement with Morabia Creation Limited (MCL), has received an 'No objection' from the National Stock Exchange (NSE). The observation letter was issued by the NSE on July 6, 2026.The Scheme of Arrangement involves Globe Enterprises (Demerged Company/Globe) and Morabia Creation Limited (Resulting Company/MCL). Following the receipt of these observations, Globe Enterprises intends to move forward with filing the complete Scheme before the National Company Law Tribunal (NCLT), ensuring compliance with all conditions specified in the observation letter.
The NSE's 'No objection,' issued under Regulation 37 of the Listing Regulations, requires the Company to meet several stringent criteria prior to and during the submission of the scheme. These mandates cover financial reporting, operational details, and corporate governance disclosures.
Key requirements and disclosure points outlined by the NSE include:
- Disclosing all details regarding ongoing adjudication and recovery proceedings, prosecution initiated, or any enforcement action taken against Globe Enterprises, its promoters, and directors before NCLT and shareholders.
- Ensuring that the liabilities relating to the Demerged Undertaking are transferred entirely to Morabia Creation Limited (MCL).
- Providing comprehensive details on the need for demerger, the rationale of the scheme, the synergies of business between the involved entities, and a cost benefit analysis of the scheme.
- Submitting a Valuation Report dated February 02, 2026, along with its Addendum dated March 11, 2026, issued by an IBBI Registered Valuer.
- Disclosing the value of Assets and liabilities of Globe Enterprises (GEIL) being transferred to MCL, as well as the post-scheme balance sheet of MCL.
- Providing details of the lock-in shares along with the undertaking dated June 29, 2026.
The NSE also mandated that the Company must disclose information regarding all unlisted companies involved in the scheme, following a format specified for an abridged prospectus under Part E of Schedule VI of the ICDR Regulations, 2018. Furthermore, the SEBI instructed that financials used for valuation reports should not be older than six months.
Details concerning the financial performance of GEIL and MCL over the last three years are critical components of the scheme documentation, as outlined below:
| Particulars | FY 2025-26 | FY 2024-25 | FY 2023-24 |
|---|---|---|---|
| Revenue from Operations (Rs.) | |||
| Profit After Tax (Rs.) | |||
| EBIDTA | |||
| YoY growth rate of Revenue (%) | |||
| YoY growth rate of PAT (%) | |||
| EPS | |||
| Industry growth rate (%) |
The validity of the NSE's 'Observation Letter' is set for six months from July 06, 2026, within which the Scheme must be submitted to NCLT. The company must also adhere to all criteria for listing required by the Exchange.
GLOBE Stock Price Movement
Globe Enterprises (India) Limited saw its stock gain 0.46% in post-market trading, settling at ₹2.2 today. The equity was traded a total of 91,701 shares in the session.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.
The information provided is for general informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. Readers are advised to rely on their own assessment and judgment and consult appropriate financial advisers, if required, before taking any investment-related decisions.
Any views, opinions, or statements expressed, where applicable, are those of the respective analysts or experts and do not reflect the views of this website. The website has no association with such viewpoints and does not assume any responsibility for them.