Leading bourse National Stock Exchange (NSE) has given its approval to Vijay Mallya-led United Spirits' proposal for transfer of a distillery in Tamil Nadu to Enrica Enterprises.
United Spirits' board in November last year had aproved a proposal for "transfer of business pertaining to the company's distillery at Poonamallee to Enrica Enterprises through a Scheme of Arrangement as well as franchising of its brands in Tamil Nadu."
Bangalore-based United Spirits is engaged in the manufacture and sale of Indian made foreign spirits, while Enrica is an unlisted firm incorporated under the laws of India and has its registered office in Chennai.
In a communication dated March 25 to United Spirits, NSE said it is granting its no-objection approval' to the proposed scheme and this observation letter would be valid for six months, within which period the company would have to file the scheme with the High Court for further clearance.
"We have perused the 'draft scheme of arrangement' and related documents submitted by United Spirits, including the confirmation of the company secretary that the scheme so submitted does not in any way violate, over-ride or circumscribe the provisions of securities laws or stock exchange requirements," NSE said.
"Accordingly, we do hereby convey our 'no-objection' with limited reference to those matters having a bearing on listing /delisting/ continuous listing requirements within the provisions of the Listing Agreement, so as to enable the company to file the scheme with the High Court," it added.
According to norms, companies seeking to execute merger or de-merger strategies need to obtain a 'no-objection certificate' from stock exchanges.