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.