Dabur India. File picture
Home-grown FMCG major Dabur India on Friday said the National Company Law Tribunal (NCLT) has approved ayurvedic hair care brand Sesa Care's merger with the company.
"The NCLT approval marks a key milestone in the transaction first announced in October 2024 and paves the way for the integration of Sesa Care with Dabur India, subject to completion of the necessary statutory filings and other formalities," Dabur India said in a regulatory filing on Friday.
The merger will complement its existing portfolio and strengthening its presence in the hair care category, it added.
In October 2024, Dabur India had said it will acquire 51 per cent of the paid-up Cumulative Redeemable Preference Shares (CRPS) of Sesa Care from its existing shareholder, True North for Rs 12.59 crore at face value.
The enterprise value is estimated to be in the range of Rs 315-325 crore, including debt of Rs 289 crore, which will be backed by the corporate guarantee of Dabur, the FMCG firm had said.
"The scheme had earlier received the requisite approvals of Dabur India's equity shareholders and unsecured creditors at meetings convened pursuant to the directions of the NCLT on May 2, 2026, followed by approvals from relevant regulatory authorities. The merger will become effective upon completion of the necessary statutory filings and other conditions stipulated under the scheme," the company said.
Under the Companies Act, a merger or amalgamation scheme becomes effective only after it receives approval from the NCLT. Prior to that, the proposal requires approvals from the boards of the companies involved, shareholders, creditors and relevant regulatory authorities, wherever applicable, according to news agency PTI.
The NCLT's approval is generally the final judicial step, giving the scheme legal effect and making it binding on all stakeholders.
"The NCLT approval is an important milestone in our journey with Sesa Care. Sesa Care is a premium brand with strong Ayurvedic credentials and complements our existing hair care portfolio well. We see significant potential in bringing the two businesses together and building Sesa Care into a stronger and larger brand," Mohit Malhotra Global Chief Executive Officer Dabur India said.
According to Abhinav Dhall Executive Director and Group Head of Corporate Strategy Dabur India, the integration of Sesa Care is aligned with the long-term strategy of strengthening the portfolio and tapping newer growth opportunities.
"We will look to leverage Dabur India's extensive distribution network, category expertise and access to key international markets to expand Sesa Care's reach and unlock revenue and cost synergies from the combined business," he said.
(With inputs from PTI)
