Rane Holdings Ltd, the holding company of auto parts house Rane Group, acquired 1.7 lakh equity shares in its subsidiary Rane Engine Valve Ltd (REVL) for a sum of ₹5 crore.
The company has acquired 1,71,821 fully paid-up equity shares (1.01 per cent) with a face value of ₹10 each for a consideration of ₹4.99 crore (at an issue price of ₹291 per equity share) in its subsidiary REVL, the company said in a filing to the stock exchanges.
This was done by converting an entire outstanding warrant of 1,71,821 out of the total 515,463 warrants (issued on March 8, 2022) into underlying equity shares. The overall shareholding of the company in REVL stands increased to 58.29 per cent (42,16,951 shares).
On March 8, 2022, REVL made a preferential offer to meet its capital expenditure programs in order to upgrade and modernise its plant and machinery, along with reducing its direct expenses as well as repaying its loans.
The company said that Rane Holdings had already paid a warrant subscription price of ₹72.75 per warrant on March 8, 2022, the total sum aggregating to ₹3.75 crore, and was allotted 5,15,463 warrants.
REVL produces engine valves, valve guides, and tappets for various IC engine applications. In FY23, it reported a turnover of ₹498 crore.
The statement said there is no change in management or control of REVL pursuant to this allotment. Voting rights of RHL in REVL would change in tandem with the change in shareholding pattern.
Shares of Rane Holdings grew 3.84 per cent at ₹1,149.20.