In an exchange filing, NBCC shared the scheme of arrangement under Section 230-232 of the Companies Act, 2013. The board had approved this scheme on July 14 this year.
HSCC (India) Ltd., incorporated in 1983, specializes in healthcare infrastructure consultancy, project management, and detailed project reports for hospitals in India and abroad, serving clients such as the World Bank and World Health Organization. As a 100% subsidiary of NBCC, HSCC’s merger aims to consolidate healthcare and infrastructure consultancy capabilities under one corporate umbrella.
What Does the NBCC-HSCC Merger Mean For Shareholders?
The Appointed Date for the merger is April 1, 2026, while the scheme will legally take effect on the Effective Date, once the Ministry of Corporate Affairs (MCA) sanctions the order and it is filed with the Registrar of Companies.
This scheme will be approved by the Ministry of Corporate Affairs as both companies are state-run enterprises. A ‘no objection’ was already conveyed by the Department of Investment and Public Asset Management (DIPAM) on July 9 this year.
A merger like this also does not require a “no objection” letter from the exchanges as under Regulation 37 (6) of the SEBI (LODR) regulations, 2015, mergers of wholly-owned subsidiaries with their respective holding companies are exempt from such approvals.
Will NBCC Shareholders Be Impact By The HSCC Merger?
Since HSCC is entirely owned by NBCC, no new NBCC shares will be issued, and no consideration or cash payment will be made under the scheme. NBCC’s existing shareholding in HSCC will simply stand cancelled upon the scheme becoming effective, meaning NBCC’s public shareholders will see no dilution or change in their shareholding pattern.
The consolidate will eliminate duplicate corporate and administrative structures, reduce compliance costs and managerial overlaps, strengthen NBCCs asset base, revenue, and competitive positions and align with the government’s policies of rationalizing CPSEs.
Shares of NBCC India ended little changed on Friday at ₹97.25. The stock is down 20% so far this year.
