The Boards of both companies approved the scheme of amalgamation on Wednesday. The transaction, which is subject to shareholder and regulatory approvals, will consolidate the businesses into a single entity, creating operational and financial synergies through unified capital allocation and a stronger balance sheet, according to a statement.
AHCL, which was listed on the stock exchanges in February 2025, had disclosed its intention to explore a merger with AEHL within three years of listing. The merged entity is expected to enhance shareholder value, simplify governance and regulatory frameworks, and be earnings accretive from the first year, it added.
As per the approved share-swap ratio, AHCL will issue 23 new equity shares of Re 1 each for every 2 fully paid-up equity shares of ₹10 each held by eligible AEHL shareholders, excluding AHCL’s existing stake.
Separately, AEHL’s board has approved a preferential issue of about ₹70 crore, comprising 1,32,827 equity shares at ₹5,270 per share, representing 2.7% of its equity capital. This allotment, subject to approvals, will not affect the eventual public shareholding of the merged entity.
“The merger is an important strategic step in the Group’s journey and will help unlock the full potential of the combined businesses. This long-awaited step towards a simpler and more efficient group structure reflects our commitment to creating significant value for our stakeholders in the long term,” Dr. Adil Agarwal, CEO of AHCL, said.
