JK Tyre merger with Cavendish gets tribunal approval

The National Company Law Tribunal, Jaipur Bench, has sanctioned the Scheme of Amalgamation between Cavendish Industries Limited and JK Tyre & Industries Limited, effective November 20, 2025. The scheme aims to consolidate both entities, which operate in similar businesses, into a single listed company, expecting benefits like economies of scale, optimized overheads, and improved investor perception.

Under the approved scheme, for every 100 equity shares of 10 rupees each in Cavendish Industries, shareholders will receive 92 fully paid-up equity shares of 2 rupees each in JK Tyre & Industries. The scheme sets the Appointed Date as April 1, 2025. Both BSE Limited and National Stock Exchange of India Limited issued "no-objection" letters to the scheme on April 1, 2025, and April 2, 2025, respectively.

The transferee company’s standalone net worth was reported as 4,192.71 crores rupees as of March 31, 2025, significantly exceeding an alleged claim in a pending IBC application. The tribunal's order clarifies that the sanction does not exempt the petitioner companies from any statutory obligations, including payment of stamp duty, taxes, or compliance with applicable laws.