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After Adani Power, ₹14000 Crore Company Announces Major Merger: CIE Automotive India Set for Change
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CNBC Awaaz•25-09-2026, 15:38
After Adani Power, ₹14000 Crore Company Announces Major Merger: CIE Automotive India Set for Change
- •CIE Automotive India plans to merge its wholly-owned subsidiary, CIE Aluminium Casting India, into itself.
- •NCLT Mumbai bench issued an order on September 24, 2026, directing notices and further proceedings, not final merger approval.
- •Upon merger, the subsidiary's business will be absorbed into the parent company; both boards approved the scheme on April 23, 2026.
- •The merger aims to better manage production, sales, and operations, reduce costs, and accelerate decision-making.
- •No new shares will be issued to existing shareholders as the subsidiary is already wholly-owned by CIE Automotive India.
Key Questions Answered
The Mumbai bench of the NCLT issued an order on September 24, 2026, directing the sending of notices and further proceedings regarding the scheme to merge CIE Aluminium Casting India into its parent company, though it is not a final approval order yet.
No, existing shareholders will not receive any new shares because the subsidiary is already a wholly-owned company, and the subsidiary's paid-up share capital will be canceled without changing the parent company's capital structure.
The merger aims to better manage production, sales, and operations, offer a wider range of parts, improve factory capacity utilization, reduce repetitive tasks, and cut costs to help secure new auto orders.
