New Delhi, Feb 9 (PTI) Auto components major Rane Group on Friday announced the merger of group firms Rane Brake Lining Ltd and Rane Engine Valve Ltd into Rane (Madras) Ltd, creating an entity with combined turnover of over Rs 3,370 crore.
The board of directors of Rane (Madras) Ltd (RML), Rane Brake Lining Ltd (RBL) and Rane Engine Valve Ltd (REVL), at their respective meetings held on Friday approved the proposed reorganisation, the Chennai-based group said in a statement.
The scheme of arrangement entails the merger of RBL and REVL into RML, it added.
“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,” it added.
Under the merger scheme, RBL shareholders will receive 21 fully paid-up equity shares of RML for 20 fully paid-up equity shares of RBL held by them as on the record date, the statement said.
On the other hand, REVL shareholders will receive 9 fully paid-up equity shares of RML for 20 fully paid-up equity shares of REVL held by them as on the record date, it added.
The proposed reorganisation 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, Rane Group Chairman L Ganesh said.
“The merger will help unlock various synergies among the businesses and will enhance stakeholder value for the long term,” he added.
Rane Group said the reorganisation brings its 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 on a proforma basis,” it said.
RML, through two divisions — Steering and Linkages Division (SLD) and Light Metal Casting India Division (LMCI) — manufactures various auto components such as mechanical steering gears, steering and suspension, high-quality light metal casting such as steering housings and engine case covers, among others.
While REVL manufactures engine valves, valve guides and tappets for various IC engine applications, RBL produces friction material products such as brake linings, disc pads, clutch facings, clutch buttons, brake shoes and railway brake blocks. PTI RKL MR
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