Kamdhenu Ltd. Converts Loan to Equity in Franchisee Unit
Kamdhenu Limited announced that its Loan and Investment Committee approved the conversion of an existing unsecured loan to Maa Kudargarhi Steels Private Limited (MKSPL), a franchisee unit, into equity shares. The loan, amounting to Rs. 10,00,00,000, will be converted into 20,000 equity shares with a face value of Rs. 10 each, at a premium of Rs. 4990 per share. This transaction, valued at Rs. 5,000 per share, involves a total consideration of Rs. 10,00,00,000.The conversion was based on a valuation report by Mr. Nitin Goyal, a Chartered Accountant and IBBI Registered Valuer. The company clarified that this transaction does not involve fresh capital infusion but restructures its existing financial exposure to acquire a stake in franchisee units.
MKSPL, incorporated on November 3, 2004, is engaged in the manufacturing and sale of TMT bars and wire rods. It operates a rolling mill facility with a production capacity of 4,19,800 Metric Tonnes (MT) per annum. The company has a current paid-up share capital of Rs. 2,26,06,910 and reported a turnover of Rs. 1751.12 Crores with an EBIDA of Rs. 108.45 Crore for the financial year ended March 31, 2025. The transaction is expected to be completed by March 31, 2026. Post-conversion, Kamdhenu Limited will hold 0.88% of MKSPL's shares.
| Particulars | Details | |
|---|---|---|
| 1 | Target entity details | Maa Kudargarhi Steels Private Limited ('MKSPL'), engaged in manufacturing and sale of TMT bars and wire rods. Turnover for FY 2024-25 was Rs. 1751.12 Crores. |
| 2 | Related party transaction | No, the acquisition does not fall within related party transactions. |
| 3 | Industry | Steel Industry |
| 4 | Acquisition impact | Conversion of Rs. 10,00,00,000 loan into 20,000 equity shares. |
| 5 | Regulatory approvals | No governmental or regulatory approval required. |
| 6 | Completion timeframe | On or before March 31, 2026. |
| 7 | Consideration | Loan of Rs. 10,00,00,000 converted to equity shares. |
| 8 | Acquisition cost | Issue/Acquisition price is Rs. 5,000 per share. |
| 9 | Shareholding post-acquisition | 0.88% |
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