2 months ago
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City-based Rane Group announced the merger of Rane Brake Lining Ltd (RBL) and Rane Engine Valve Ltd. (REVL) into Rane (Madras) Ltd. (RML) to bring all operating businesses under a single entity, subject to regulatory and customary approvals.
The implementation of the scheme is expected to take around 9-12 months subject to receipt of requisite approvals, the companies said in a statement.
The proposed transaction will create a larger company with a combined turnover of ₹3,373 crore for the trailing 12 months period ended December 31, 2023 on a proforma basis.
As per the scheme, RBL shareholders will receive 21 equity shares of RML for 20 equity shares of RBL. Similarly REVL shareholders will receive 9 equity shares of RML for 20 equity shares of REVL held by them as on the record date.
The scheme does not involve payment of any cash consideration. Post the merger, the shareholding of the promoters will come down to 70.45% from 72.,65% and rest is held by the public.
“The merger will help unlock various synergies among the businesses and will enhance stakeholder value for the long term,” said Group Chairman L. Ganesh.
“This reorganisation scheme demonstrates our commitment to take actions that create value for our shareholders. The transaction simplifies the group structure by bringing together listed operating businesses and creating a platform that is well poised for the next phase of growth,” said Group Vice Chairman Harish Lakshman.
