Ashapura eyes a better future through an amalgamation with Momai

The last day of March brought in a hopeful news for the lingerie industry, as Ashapura Intimates Apparel Limited informed publicly that based on the recommendation of the Audit committee, the Board of Directors of AIFL at their meeting held on the same day have inter alias, considered and approved the Scheme of Amalgamation of Momai Apparels Limited with Ashapura Intimates Fashion Limited (“Scheme of Amalgamation”). This amalgamation brings together two facets of the mother company together and connects the front end, customer facet of Ashapura to the production facet of Momai.

“We had long promised our shareholders that we will bring together the entire value chain closer, by incorporating every aspect into one place. This move is that big step to fulfill that promise. This will not only be a profitable idea for the investors, but also for the companies, which were earlier separate. And in future this will result into better corporate governance too,” informed an excited Harshad Thakkar, Head of the Lingerie committee, CMAI, Owner Ashapura Intimates Fashion Limited.

The above proposal is subject to satisfaction of various conditions, including obtaining necessary approvals from the shareholders, creditors and regulatory authorities including Securities and Exchange Board of India (SEBI), Stock Exchanges and sanction of scheme by concerned High Courts.

Harshad Thakkar further said that this process will definitely give them a clean chit as they really don’t have any tampered record so far. So he is extremely enthusiastic that the entire process of amalgamation will be effectively completed within the next 6-12 months.