Welspun Living Gets Board Nod For Merger Of Two Subsidiaries To Streamline Business

Welspun Living said the scheme of amalgamation will allow streamlining and simplification of the business structure by setting up all the new manufacturing facilities under a single entity.

The elimination of duplicated costs will lead to a reduction in operational, administrative expenses, and overheads, resulting in improved cost and operational efficiencies, the company said.

Additionally, streamlining legal and regulatory compliances will enhance overall shareholder value, leveraging the financial strength of the combined entity.

The merger also offers growth opportunities by leveraging combined assets, capabilities, experience, expertise, and infrastructure. Moreover, it facilitates more efficient cash management for the transferee company, providing unhindered access to cash flow that can be strategically deployed for future growth and expansion, Welspun Living said.

Welspun Living share price closed 1.13% higher at Rs 165.2 apiece, ahead of the announcement, compared to 1% advance in the benchmark BSE Sensex. The stock has risen 15% on a year-to-date basis.