Rose Merc Acquires 30.01% Stake in Virtual Gain Technologies, Making it a Board-Controlled Subsidiary
Rose Merc Ltd has acquired a substantial stake in Virtual Gain Technologies Private Limited (Virtual), marking a strategic move to facilitate its expansion into the fintech sector of India. The acquisition allows Rose Merc to collaborate with Virtual, leveraging its expertise as a technical service provider.Following the transaction, Rose Merc appointed majority directors onto the Board of Directors of Virtual. This appointment establishes Virtual as a board controlled subsidiary of Rose Merc.
The acquisition involved subscribing to shares of Virtual, representing 30.01% of its post issued share capital on a fully diluted basis. The deal was executed through a cash consideration mechanism.
Details pertaining to the acquired entity and the transaction are outlined below:
Acquisition and Transaction Details
| Parameter | Detail |
|---|---|
| Target Entity | Virtual Gain Technologies Private Limited |
| Business of Target | Developing an online market platform for sale, purchase, import, export, digital payments, E-wallet services, or Bharat bill payment system services. |
| Acquisition Stake | 30.01% of the post issued share capital (fully diluted basis) |
| Transaction Nature | Cash Consideration |
| Subscription Shares | 4,288 equity shares |
| Issue Price per Share | Rs. 2,332 |
| Total Subscription Amount | Up to Rs. 1,00,00,000 |
Financial Profile of Virtual Gain Technologies Private Limited
The transaction occurred in the context of several years of growth for Virtual. The company, which operates as a technical service provider, has demonstrated increasing turnover:| Financial Year | Turnover (Amount in Rupees) |
|---|---|
| 2023-24 | 64,62,816 |
| 2024-25 | 98,87,703 |
| 2025-26 | 1,23,75,226 |
The acquisition is noted as a transaction that does not fall under related party status, and the Promoter/Promoter Group/Group Companies hold no interest in Virtual.
Stock Price Movement
Rose Merc Ltd shares closed out on Wednesday at ₹61.94, reflecting a decline of 5.95% for the day. Throughout the session, the stock demonstrated high volatility, hitting an intraday low of ₹61.50 while managing to touch a high of ₹70.86.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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