In a significant development, the National Company Law Tribunal (NCLT) has granted approval for the amalgamation of Udaya FM Private Limited with Kal Radio Limited, a subsidiary of Sun TV Network. This strategic move aims to create synergies between the FM radio broadcasting businesses of both entities, enhancing operational efficiency and competitiveness.

Sun TV Network had communicated its intention to merge Udaya FM with Kal Radio in a letter dated January 4, 2024. The NCLT officially sanctioned the amalgamation under Sections 230 and 232 of the Companies Act, 2013, on March 21, 2025. The order was subsequently communicated to the company on April 1, 2025.

The approved scheme is designed to pool financial, managerial, technical, distribution, and marketing resources, thereby reducing costs and improving operational efficiency. The NCLT observed that the scheme is “prima facie beneficial to the company and will not be in any way detrimental to the interest of the shareholders or creditors.”

As part of the amalgamation, all assets and liabilities of Udaya FM will be transferred to Kal Radio Limited. Employees of Udaya FM will be absorbed by Kal Radio without any interruption in service, maintaining their current terms and conditions.

Under the terms of the approved scheme, Kal Radio Limited will issue equity shares to the shareholders of Udaya FM. Specifically, 41,965 fully paid-up equity shares of ₹10 each in Kal Radio Limited will be allotted for every 10,000 equity shares held in Udaya FM Private Limited.

The NCLT’s approval of the Udaya FM and Kal Radio amalgamation marks a significant step in Sun TV Network’s corporate restructuring efforts. By integrating these entities, Sun TV aims to strengthen its position in the FM radio broadcasting sector, leveraging synergies to enhance competitiveness and operational efficiency.

Key Highlights:

• The NCLT approves the amalgamation of Udaya FM with Kal Radio, a subsidiary of Sun TV Network.
• The move aims to create synergies and enhance operational efficiency in FM radio broadcasting.
• All assets and liabilities of Udaya FM will be transferred to Kal Radio Limited.
• Employees of Udaya FM will be absorbed by Kal Radio without service interruption.