The Board of Directors of Praveg Limited at its meeting held on October 26, 2023, considered and approved schemes for the proposed amalgamation of Eulogia Inn Private Limited (EIPL) into and with Praveg Limited. The Board has considered the proposal based on independent fairness and valuation opinions, and followed the process laid down under the Companies Act, 2013 and Securities and Exchange Board of India Regulations.
The proposed merger between EIPL and Praveg Limited signifies a strategic consolidation. EIPL’s recent reported Net Worth of INR 1759 lakhs, along with a corresponding book value of INR 14.66 per share, reinforces its strong financial standing in this merger. Emphasizing a competitive pricing advantage, the merger has been meticulously planned, showcasing our discerning investment acumen. This consolidation is designed to optimize operational efficiency, foster a sharper business focus, and harness synergies from both entities, all under the robust leadership of Praveg. Aligned with Praveg’s long-term vision, this amalgamation is poised to act as a catalyst for the company’s growth trajectory, promising to unlock new opportunities and establish a stronger market presence.
Currently, EIPL owns and operates a hotel in Ahmedabad comprising of 45 rooms, 3Banquets and 2 conference halls. In the current financial year, EIPL is expected to generate Rupees 12 to 15 crores revenue majority of which will be from wedding and social gathering events.
Based on the reports of the independent valuer, the Board has approved swap ratio for the proposed amalgamation as below:
27 (Twenty Seven) equity share of Praveg Limited of the face value of Rs. 10/- each (Indian Rupees Ten) each credited as fully paid-up for every 187 (One Hundred Eighty Seven) equity share of INR 10/- (Indian Rupees Ten) each fully paid-up held by such member in the Eulogia Inn Private Limited (EIPL). Total 1732622 new equity shares of Praveg will be issued to the shareholders of Eulogia Inn Private Limited (EIPL).
The amalgamation will drive a strong synergy through optimal utilisation of existing resources, expertise and infrastructure of both the companies. The merged entity will have sufficient funds to meet the future requirements of the working capital and business expenses. As both companies share common business values and philosophies, the merger will see smooth amalgamation.
The Scheme will also reduce the operating cost of both the companies, as they will be capitalising on each other’s competency and market. This will not only provide Praveg an edge in the market but also increase profitability and enhance shareholders value.
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