Ratnamani Metals -; Tubes to acquire 53% stake in Ravi Technoforge; stock adds ~1%

6 Oct 2022 , 09:22 AM

Ratnamani Metals & Tubes Limited has signed Definitive Agreements for the Subscription of Equity Shares of Ravi Technoforge Private Limited from its current shareholders in three tranches over the period based on performance indicators and other terms and circumstances.

On the first close, the company will own 53.00% of RTL on a fully diluted basis. The first tranche of 53% stake acquisition will consist of 26% of the issued, subscribed, and paid-up share capital in RTL via share subscription under the preferential allotment and 27% of the issued, subscribed, and paid-up share capital in RTL (post dilution) via purchase from existing shareholders.

RTL is a major manufacturer of high-quality forged and turned bearing rings, gear blanks, and other comparable bearing components used in a wide range of industrial and automotive applications. RTL primarily serves all of the world’s major bearing producers, not only those in India.

The cost of acquisition for the first 53% tranche is Rs121.05 per share, amounting to Rs97.88 crore, with an additional consideration of Rs0.50 crore for a non-compete charge to Obligators, which will be paid over a four-year period.

The company will subscribe for 39,66,750 RTL equity shares through preferential allotment and will buy 41,19,300 RTL equity shares from existing RTL shareholders.

At around 9.25 AM, Ratnamani Metals & Tubes was trading at Rs1,930.45 apiece, up by 0.87% from its previous closing of Rs1,913.80 on the BSE. The scrip opened at Rs1,942.45 and touched intraday high and low of Rs1,944.50 and Rs1,930.45 respectively.

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