Leading bourses BSE and NSE have given approval for the merger of Mount Everest Mineral Water with its parent firm Tata Global Beverages.
Tata Global Beverages, in November, had announced that its board has approved the merger of Mount Everest Mineral Water with itself, consequent to which the draft scheme of amalgamation was filed with the stock exchanges for approval.
In a communication to Tata Global Beverages, the exchanges said it is granting 'no-objection approval' to the proposed scheme.
Now, the company can approach the High Court for final approval.
The exchanges have received the 'draft scheme of arrangement' submitted by Tata Global Beverages stating that "the scheme does not in any way violate, over-ride or circumscribe the provisions of securities laws or stock exchange requirements."
"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.
Mount Everest Mineral Water is a subsidiary of Tata Global Beverages and holds 50.07 per cent stake in the former.
Tata Global Beverages is a global beverage business and the world's second largest tea company. The group's annual turnover is USD 1.4 billion and it employs over 3,000 people worldwide.