Ratnamani Metals & Tubes Limited Acquires Additional Stake in Ravi Technoforge Private Limited

Strategic Insights -

Ratnamani Metals & Tubes Limited (RMTL) has further strengthened its hold on Ravi Technoforge Private Limited (RTL) by acquiring additional equity shares. As per a recent corporate announcement, the company has subscribed to 30,48,669 equity shares of RTL at an issue price of Rs.100 per share, aggregating to Rs.30,48,66,900. This acquisition was made on a Rights basis, where existing shareholders of RMTL were entitled to subscribe to the new equity shares. The subscription of these shares has resulted in a dilution of RMTL's shareholding from 80.017% to 75.00% of the total issued, subscribed, and paid-up equity share capital of RTL.

Key Takeaways:

  • RMTL has acquired 30,48,669 equity shares of RTL at an issue price of Rs.100 per share, aggregating to Rs.30,48,66,900.
  • The subscription of these shares was made on a Rights basis, where existing shareholders of RMTL were entitled to subscribe to the new equity shares.
  • The acquisition has resulted in a dilution of RMTL's shareholding from 80.017% to 75.00% of the total issued, subscribed, and paid-up equity share capital of RTL.
  • The cost of the subscription/ acquisition exceeds the thresholds specified in sub-clause (c) of clause (i) of Regulation 30(4) of the SEBI (LODR) Regulations, 2015.
  • The detailed disclosure with respect to the further subscription on a Rights basis in the subsidiary company as required under Regulation 30(6) read with Schedule III Part A Para A (Clause 5) of the SEBI (LODR) Regulations, 2015 is enclosed herewith as Annexure - "A".
  • RTL has come out with an Issue of 50,85,572 Rights Equity Shares of Rs.10 each at a premium of Rs.90 per Equity Share for cash, aggregating to Rs.50,85,57,200 on Rights basis.
  • The existing shareholders of RMTL shall invest further capital in RTL (including without limitation by way of rights issue, preferential issue or any other manner) so as to ensure that at all times their shareholding in RTL does not fall below 25% (twenty five percent) of the total issued, subscribed, and paid-up Equity Share Capital of RTL, on the Fully Diluted Basis.
  • The Master Amendment Agreement to the Share Subscription cum Purchase Agreement and Shareholders Agreement dated October 5, 2022, has been altered to modify the options available to the existing/selling shareholders under the 3rd Tranche.

Statistics:

  • 30,48,669 equity shares of RTL acquired by RMTL at an issue price of Rs.100 per share, aggregating to Rs.30,48,66,900.
  • Dilution of RMTL's shareholding from 80.017% to 75.00% of the total issued, subscribed, and paid-up equity share capital of RTL.
  • 50,85,572 Rights Equity Shares of Rs.10 each issued by RTL at a premium of Rs.90 per Equity Share, aggregating to Rs.50,85,57,200.
  • 25% (twenty five percent) of the total issued, subscribed, and paid-up Equity Share Capital of RTL, that existing shareholders of RMTL shall maintain so as to invest further capital in RTL.
  • Rs.30,48,66,900: aggregate amount subscribed by RMTL for acquiring additional equity shares of RTL.
  • Rs.50,85,57,200: aggregate amount raised by RTL through Rights issue of equity shares.

Sources:

  • National Stock Exchange of India (NSEI) - Corporate Announcement dated [no specific date mentioned]
  • SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015
  • SEBI Master Circular No.SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024