NCLT Approves Scheme of Arrangement for Magnum Ventures & Magnum Paperz
NCLT has approved a Scheme of Arrangement for Magnum Ventures Limited and Magnum Paperz Limited. The scheme involves demerging Magnum Ventures' paper business into Magnum Paperz. Equity shareholders will receive 2 new equity shares of Magnum Paperz for every 10 held in Magnum Ventures. Meetings are scheduled for November 20, 2026.
The NCLT's approval of the Scheme of Arrangement is a significant corporate action that will lead to the restructuring of the company's business operations and capital structure.
The NCLT approving the scheme of arrangement is a positive development for the company, enabling the demerger and focused business strategies.
Magnum Ventures Limited has announced that the Hon’ble National Company Law Tribunal (NCLT) has pronounced its order on September 22, 2026, regarding the Scheme of Arrangement between Magnum Ventures Limited and Magnum Paperz Limited. The order, uploaded on the NCLT portal on September 25, 2026, is in connection with the First Motion Application filed for the aforesaid Scheme.
The Scheme involves the demerger of the 'Paper Business' of Magnum Ventures Limited into Magnum Paperz Limited. Magnum Ventures Limited currently operates in two distinct verticals: Paper Business and Hotel Business (a Five Star Hotel under the brand “Country Inn & Suites by Radisson”). Magnum Paperz Limited was incorporated on September 22, 2025, to carry on the paper manufacturing business.
The rationale for the demerger includes creating focused business strategies, achieving operational and strategic flexibility, optimizing capital structure, and facilitating independent growth and expansion for each business vertical. The Scheme also includes a reduction of share capital for the Demerged Company to realign its capital structure with the residual Hotel Business, and the cancellation of the pre-Scheme share capital of the Resulting Company to ensure shareholders directly hold shares in Magnum Paperz Limited in the same proportion as they hold in Magnum Ventures Limited.
The NCLT has directed the convening of meetings for the Equity Shareholders, Secured Non-Convertible Debenture Holders, Secured Creditors, and Unsecured Creditors of Magnum Ventures Limited on Friday, November 20, 2026. Meetings for the Preference Shareholders of Magnum Ventures Limited and for all classes of shareholders of Magnum Paperz Limited (Equity Shareholders and Unsecured Creditors) have been dispensed with, as consent affidavits have been obtained.
The Share Exchange Ratio determined by Ms. Mallika Goel, Registered Valuer, stipulates that the Resulting Company (Magnum Paperz Limited) will issue and allot two (2) New Equity Shares of face value ₹10 each for every ten (10) Equity Shares of face value ₹10 held in the Demerged Company (Magnum Ventures Limited). Additionally, for every ten (10) Compulsorily Redeemable Preference Shares of face value ₹100 held in the Demerged Company, the Resulting Company will allot nine (9) New Compulsorily Redeemable Preference Shares of face value ₹100.
The NCLT order also appoints Mr. Gaurav Mahajan as the common Chairperson and Mr. Dhruv Saxena as the common Alternate Chairperson, along with Mr. Ramesh Chandra Agarwal as the common Scrutinizer for the meetings.
What to do with a filing like this
Magnum Ventures Limited filed this with the NSE as a statutory disclosure, categorised under merger. It is a primary document, not a recommendation, and the desk marks it high impact, which is the band that most often changes something.
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See the model portfoliosA plain-language summary of a public exchange filing by Magnum Ventures Limited. Read the original for the full detail.