Agreeing to the contention, the NCLAT opined that “as the merger is of a wholly owned subsidiary company into its holding company, no shares would be allotted as consideration pursuant to the merger; the proposed Scheme will not result in any dilution in the shareholding of the shareholders of the ‘Transferee Company’ (EGIS), the net worth of the ‘Transferee Company’ (EIPL) is positive”.
Accordingly, their appeal was allowed.
Source: Barandbench
