The merger is taking place under sections 230 to 234 of the Companies Act, 2013, and other provisions of the Companies Act 2013 (including any statutory modification or re-enactment or amendment thereof) as per the terms and conditions mentioned in the scheme of merger placed before the board. Further, the previously filed scheme was revised due to changes in the fresh valuation report.

Bhandari Hosiery Exports is engaged in fabric dyeing, fabric processing, fabric knitting and the manufacturing of garments and fabrics. Tikani Exports is engaged in fabric dyeing and manufacturing of garments. The consolidation of entities with similar functions would result in operational and administrative efficiencies, optimum utilisation of infrastructure facilities and available resources, reduction in costs by focused operational efforts, rationalization, standardization, simplification of business processes and elimination of duplication of managerial efforts.

Upon the scheme of amalgamation becoming effective, all equity shareholders of Tikani Exports (transferor company) will be allotted equity shares in Bhandari Hosiery Exports (transferee company) in the ratio of 1.7684623 equity shares (having a face value of Rs 1 each) in Bhandari Hosiery Exports for one equity share (having a face value of Rs 10 each) of Tikani Exports.