Rane Group announces merger of Rane Brake Lining Ltd. and Rane Engine Valve Ltd. into Rane (Madras)

The merger significantly simplifies the group structure by consolidating listed operating companies.

Autocar Pro News Desk By Autocar Pro News Desk calendar 09 Feb 2024 Views icon2589 Views Share - Share to Facebook Share to Twitter Share to LinkedIn Share to Whatsapp
Rane Group announces merger of Rane Brake Lining Ltd. and Rane Engine Valve Ltd. into Rane (Madras)

The Board of Directors of Rane (Madras) Limited (“RML”), Rane Brake Lining Limited (“RBL”) and Rane Engine Valve Limited ("REVL”), at their respective meetings held today, have approved the proposed reorganisation through a scheme of arrangement (“Scheme”) which entails merger of RBL and REVL into RML (“Transaction”).

The merger significantly simplifies the group structure by consolidating listed operating companies and aligns public shareholders’ interest by converging their stake at a single listed entity.

Upon the Scheme becoming effective RBL shareholders will receive 21 fully paid-up equity share(s) of RML for 20 fully paid-up equity share(s) of RBL held by them as on the record date.


 REVL shareholders will receive 9 fully paid-up equity share(s) of RML for 20 fully paid-up equity share(s) of REVL held by them as on the record date.

The reorganisation brings all operating business subsidiaries under one single entity. The proposed transaction will create a larger company with a combined turnover of Rs. 3,373 crore for the trailing twelve months period ended December 31, 2023 (i.e., Jan’23 to Dec’23) on a proforma basis.

The Scheme is subject to the necessary regulatory and customary approvals including approval of the stock exchanges, SEBI, the respective shareholders, and creditors of each of the companies and NCLT (Chennai bench). Implementation of the scheme is expected to take around 9 to 12 months subject to receipt of the requisite approvals.

RELATED ARTICLES
Sterling Tools wants 40% sales from EV biz by FY25

auther Autocar Pro News Desk calendar14 Apr 2024

This boost is expected from the EV business mix, a part of the company’s strategy to diversify its operations.

Driving EV business with agility and flexibility

auther Autocar Pro News Desk calendar14 Apr 2024

CEOs from the EV startup ecosystem met in Bengaluru and Pune to discuss the challenges and business opportunities.

'E-3wheelers not aspirational, but make money': Amit Singh, head, 3W division, Altigreen Propulsion Labs

auther Autocar Pro News Desk calendar14 Apr 2024

The challenges are more ground-driven in terms of the availability of electricity, and how to make it more economical, a...