Indian tyre manufacturer JK Tyre & Industries Ltd has received National Company Law Tribunal approval for its amalgamation with Cavendish Industries Ltd, marking a significant step towards consolidating its tyre operations under a single entity.
The approval from the tribunal's Jaipur Bench paves the way for operational unification across the tyre group, with the appointed merger date set for 1 April 2025. The tribunal order confirms that all assets, liabilities, contracts, licences and proceedings of Cavendish Industries will transfer to JK Tyre once the certified copy is filed with the Registrar of Companies.
Under the approved arrangement, JK Tyre will issue 92 fully paid-up equity shares of ₹2 each for every 100 equity shares of ₹10 each held in Cavendish Industries. The allotment will follow a record date to be determined by the company. This defined swap ratio provides clarity for Cavendish shareholders and formalises the financial exchange required to complete the merger.
The boards of both companies approved the merger on 16 September 2024. As of 31 March 2025, Cavendish Industries had a net worth of ₹1,064.22 crore, whilst JK Tyre's stood at ₹4,192.71 crore.
The amalgamation aims to bring all tyre-related businesses onto JK Tyre's listed platform to drive scale and cost efficiencies. According to the scheme, the integration is expected to deliver several operational benefits, including economies of scale across production and procurement, lower financing and administrative expenses, and streamlined statutory compliance within a single corporate entity.
The merger should also provide stronger customer access via a unified distribution network and enable consolidation of tax credits and accumulated losses, which will vest with JK Tyre post-merger. The integration is positioned to strengthen group-wide operations as capacities, supply chains and market networks are combined.
JK Tyre has committed to preserving Cavendish's records, complying with all tax obligations, paying statutory fees including stamp duty, and filing the tribunal order with the Registrar within mandated timelines. Once the certified tribunal order is lodged with the Registrar of Companies, the scheme will take effect, allowing JK Tyre to issue new equity shares to Cavendish shareholders and commence full operational integration across manufacturing, distribution and statutory processes.
The tribunal noted that an ongoing insolvency petition against JK Tyre will continue independently, as the merger does not alter creditor positions or liabilities.
Market reaction to the announcement was modest. On 21 November at 11:05 am IST, JK Tyre's share price traded at ₹453.15, up ₹2.60 (0.58%) from the previous close. The stock opened at ₹450.55, touching a high of ₹461.00 and a low of ₹448.35. The company's market capitalisation stood at ₹12,420 crore, with a P/E ratio of 23.20, dividend yield of 0.66%, a 52-week high of ₹476, and a 52-week low of ₹243.
Stakeholders will be monitoring further updates on the share allotment schedule, progress of the consolidation process, and the company's disclosures on post-merger operational developments.
The consolidation follows a year of operational updates from the manufacturer. In November, JK Tyre inaugurated India’s first precision tyre buffing and grinding machine for wet-grip testing at NATRAX, supporting performance evaluation of worn tyres, a marker of the group’s technical investments.
Earlier in 2025, the International Finance Corporation approved a sustainability-linked loan facility with allocations for JK Tyre and Cavendish to expand PCR and TBR capacity in India, context that underscores the industrial logic of pooling assets under one roof.
Tagged with: JK Tyre merger, Cavendish Industries, NCLT Jaipur, share swap ratio, tyre manufacturing India, procurement efficiencies, distribution network, sustainability-linked loan, capacity expansion, corporate amalgamation, Registrar of Companies
Disclaimer: This content may include forward-looking statements. Views expressed are not verified or endorsed by Tyre News Media.
