NCLT Dismisses Philips India's Petition Amid Valuation Discrepancies

The National Company Law Tribunal (NCLT) has dismissed the petition by Philips India to buy out the remaining 3.87% from its minority shareholders due to significant valuation differences. The tribunal agreed with the valuation method but highlighted price discrepancies. The petition was filed under Section 66 of the Companies Act, 2013.

The National Company Law Tribunal (NCLT) has rejected Philips India's petition to acquire the remaining 3.87% stake from its minority shareholders, citing significant discrepancies in share valuations. Philips India's appointed valuer pegged the share price at Rs 740, while the minority shareholders' valuer estimated a range of Rs 4,605 to Rs 6,119.

The NCLT observed the valuation method used by both parties was appropriate but noted a substantial difference in the resulting share prices. The tribunal suggested that parameters influencing the valuation should be disclosed but chose not to issue such a direction since it dismissed the petition.

The petition was filed under Section 66 of the Companies Act, 2013, regarding share capital reduction. NCLT also stated that compliance issues related to the Foreign Exchange Management Act were not under its purview. The bench dismissed the application, led by members Bidisha Banerjee and D. Arvind.

(With inputs from agencies.)