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 reorganization through a scheme of arrangement which entails merger of RBL and REVL into RML.
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, a statement said.
“The reorganization 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,” according to the statement.
Commenting on the Transaction, L Ganesh, Chairman, Rane Group said, “Today marks an important day in our journey to create value for our stakeholders. We welcome the respective Boards’ decision to approve the proposed reorganization which allows all shareholders to participate in the growth of a larger auto component player with diversified product lines with exposure to the attractive automotive industry. The merger will help unlock various synergies among the businesses and will enhance stakeholder value for the long term.”
Harish Lakshman, Vice Chairman, Rane Group added, “This reorganization 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.”
Rane (Madras) Limited (RML) is part of the Rane Group of Companies, a leading auto component group based out of Chennai.
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