VMS TMT board clears AUSL merger with company

New Delhi: Steel products manufacturer VMS TMT Ltd on Monday said its board has approved the merger of TMT bars maker Aditya Ultra Steel Ltd (AUSL) with the company.

The proposed amalgamation will combine the manufacturing infrastructure, distribution network, management expertise, and financial resources of both companies, creating a stronger platform for sustainable long-term growth, VMS TMT said in a statement.

"Under the approved Scheme of Amalgamation, shareholders of Aditya Ultra Steel Ltd will receive 75 equity shares of VMS TMT Ltd for every 100 equity shares held in Aditya Ultra Steel Limited," the company said.


"By bringing together two highly complementary businesses, we are creating an integrated platform with enhanced manufacturing capabilities, a wider distribution footprint, and stronger financials," Varun Jain, Chairman & Managing Director, VMS TMT Limited, said.

The merger will lead to a combined installed manufacturing capacity of over 300,000 tonnes per annum, creating substantial economies of scale across procurement, production, logistics, and distribution in Gujarat, it added. VMS TMT and AUSL are Gujarat-based manufacturers of TMT steel bars. PTI