Goyal Salt Limited Approves Participation in Rights Offer of Subsidiary, Acquiring 51% Stake
Goyal Salt Limited has approved participation in the Rights Offer of its subsidiary, Goyal Foods Industries Private Limited, through the subscription of equity shares. The transaction is expected to be completed within two days of the share allotment.The Board of Directors of Goyal Salt Limited sanctioned the purchase of 4,59,000 equity shares in Goyal Foods Industries Private Limited. These shares were offered under a Rights Issue and are priced at a face value of Rs. 10/- per share. The total cost for Goyal Salt Limited to acquire these shares is Rs. 45,90,000 (Rupees Forty Five Lakh Ninety Thousand only).
Goyal Salt Limited will acquire 51% of the equity share capital in Goyal Foods Industries Private Limited post allotment. The transaction falls under the category of a related party transaction as the entity being subscribed to is a subsidiary of the listed company. However, it was conducted on an arm's length basis through the subscription into the rights issue.
Goyal Foods Industries Private Limited operates in the Salt Production and Refining industry. Proceeds from this rights issue will be utilized by Goyal Foods Industries Private Limited for capital expenditure and working capital requirements. Mr. Rajesh Goyal, Chairman cum Whole-time Director of Goyal Salt Limited, holds a director position at Goyal Foods Industries Private Limited.
Key details regarding the acquisition are summarized below:
| Particular | Details |
|---|---|
| Target Entity Name | Goyal Foods Industries Private Limited |
| Industry | Salt Production and Refining |
| Shares Subscribed | 4,59,000 Equity Shares |
| Price Per Share | Rs. 10/- |
| Total Consideration | Rs. 45,90,000 (Cash Consideration) |
| Acquired Stake | 51% of the equity share capital (post allotment) |
| Completion Timeline | Expected within 2 days from the date of allotment |
GOYALSALT Stock Price Movement
Goyal Salt Limited's shares finished trading lower today, shedding 0.88% to settle at ₹113. The stock recorded a total traded volume of 4,800 shares during the session.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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