EMA India, Dynalog India Boards Approve Merger

The Boards of Directors for EMA India Limited and Dynalog India Limited have officially approved a merger plan that will see EMA India absorbed into Dynalog India. This strategic move aims to create a more robust and efficient combined entity.

Key Financials and Share Exchange

Financial figures as of December 31, 2025, highlight the scale difference between the companies. EMA India reported NIL turnover and assets totaling ₹5.91 crore, with a net worth of ₹4.9 crore. Dynalog India, meanwhile, posted a turnover of ₹85.82 crore and assets valued at ₹99.54 crore, holding a net worth of ₹46.55 crore.

The approved share exchange ratio is set at 28 fully paid equity shares of ₹10 each in Dynalog India Limited for every 25 fully paid equity shares held in EMA India Limited. The projected net worth for the combined entity is ₹51.45 crore.

Strategic Rationale for the Merger

This amalgamation is designed to streamline the corporate structure, reducing the number of legal entities and generating significant cost savings. By combining EMA India's assets with Dynalog India's operational business, the merged company anticipates enhanced market reach, accelerated growth, and improved operational efficiencies.

Dynalog India operates in the industrial automation and embedded systems sector, supplying control and IoT solutions to industries like manufacturing and power. EMA India, with its NIL turnover, will integrate its assets into this active business.

Impact and Changes

Following the merger's completion, EMA India Limited will cease to exist as a separate legal entity, being dissolved without liquidation. Dynalog India Limited will be the surviving company, integrating EMA India's assets and operations. Shareholders of EMA India will receive shares in Dynalog India according to the agreed exchange ratio.

Competitive Landscape

Dynalog India competes in a dynamic industrial automation sector against major players. Key competitors include:

• Honeywell Automation India Ltd. (HONAUT): Reported ₹1,417 crore revenue and ₹228 crore profit in FY23.
• Siemens India Ltd. (SIEMENS): Recorded FY23 revenue of ₹19,027.9 crore and profit of ₹1,330.3 crore.
• ABB India Ltd. (ABB): Posted FY23 revenue of ₹10,078 crore and profit of ₹692 crore.

These comparisons underscore the scale and competitive nature of the market Dynalog India operates within.

Potential Hurdles

The merger process faces several critical steps. These include securing all necessary statutory and regulatory approvals, notably from the National Company Law Tribunal (NCLT). Obtaining observation letters from BSE Limited is also a key requirement.

Next Steps

Investors will be watching for the progress on regulatory approvals. Key milestones include the NCLT's sanctioning of the scheme, securing no-objection letters from BSE Limited, and Dynalog India's formal application for the listing of its new shares post-approval. The market's reaction to the merger's strategic rationale and expected synergies will also be closely monitored.