ABB India on Thursday said that the Bengaluru Bench of the National Company Law Tribunal (NCLT) has approved the demerger of its power grids business to ABB Power Products and Systems India Ltd (APPSIL).
"The Bengaluru Bench of the National Company Law Tribunal (NCLT) vide its order dated November 27, 2019, sanctioned the said Scheme involving the demerger of the power grids business of the company to APPSIL under the provisions of Sections 230 - 232 and other applicable provisions of the Companies Act, 2013," ABB India said in a regulatory filing.
The scheme will be effective upon filing the certified copy of the order of NCLT with Registrar of Companies, the filing added.
In March, ABB India in a regulatory filing had said that "the proposed demerger is expected to assist the current power grids division to independently pursue the business excellence built over a long period in the power infrastructure with its robust and time tested business model."
The shares of the company were trading at Rs 1,444, up 0.37 per cent on BSE.