Ratnamani metals & tubes adjusts shareholding in Ravi Technoforge

Ratnamani Metals & Tubes Limited (RMTL) announced a Master Amendment Agreement to its Share Subscription cum Purchase Agreement and Shareholders' Agreement with Ravi Technoforge Private Limited (RTL), its subsidiary, dated October 5, 2022. This amendment alters the terms of RTL's acquisition, initially involving three tranches. Previously, RMTL had acquired 83,86,050 equity shares (53%) in the first tranche and an additional 41,22,000 equity shares in the second tranche by August 31, 2024, bringing its total holding to 1,22,08,0550 equity shares (80.017%) of RTL's paid-up equity capital.

Under the amended terms, RTL’s existing shareholders will invest further capital to maintain their holding at no less than 25% of the total fully diluted equity share capital. Concurrently, RMTL's total shareholding in RTL will not exceed 75% on a fully diluted basis, modifying the previous 3rd tranche acquisition planned for completion by July 31, 2027. RTL has issued 50,85,572 Rights Equity Shares at ₹10 each with a premium of ₹90 per share, totaling ₹50,85,57,200.

RMTL subscribed to 30,48,669 of these Rights Equity Shares at ₹100 per share (including premium), aggregating ₹30,48,66,900. Following this subscription, Ratnamani Metals & Tubes now holds 1,52,56,710 equity shares in RTL, diluting its shareholding from 80.017% to 75.00% of the total issued, subscribed, and paid-up equity share capital of 2,03,42,288 equity shares. This transaction is considered a related party transaction, conducted at arm's length, and falls within the ordinary course of business, with no impact on RMTL’s management or control.