Novopan Industries Updates on Scheme of Arrangement of group companies

Novopan Industries Ltd has announced that the Company has received the approval of Hon'ble High Court of Andhra Pradesh for its proposal to merge Particle Board Division of GVK Novopan Industries (P) Ltd., resin-manufacturing division of GVK Petrochemicals (P) Ltd., and Amalgamation of Novofurniture (P) Ltd with itself. The Company has received the certified copy of High Court Order and has filed the same with the Registrar of Companies, Andhra Pradesh, Hyderabad. The merger is effective from April 01, 2006. The completion of merger enhances the production capacity of the Company by more than hundred per cent and makes it the largest Particle Board manufacturer in the country. The merger process has also resulted in backward integration with the merger of resin division, which produces resins, the critical raw material required for the manufacture of Particle Boards.

Mr. G V Krishna Reddy, Chairman of the Company, on this occasion said, "The Completion of Merger of Novopan is a great day for all our investors, customers, employees and other stakeholders. We expect to improve our leadership position in the market with the enhanced capacity".

The Company has further announced that, a meeting of the Board of Directors of the Company will be held January 31, 2007 to consider the High Court Order and the Consolidated results of the merged undertaking for the quarter ended December 31, 2006.

Source : Equity Bulls

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