Rose Merc Enters Fintech Sector Through Collaboration Agreement with Virtual Gain Technologies
Rose Merc Limited has entered into a Collaboration Agreement with Virtual Gain Technologies Private Limited and the promoters, Amitkumar Singh and Niti Trivedi. The agreement outlines a proposed collaboration focused on the development and operation of Rose Merc's fintech business division.The collaboration, designed to enter the fintech sector of India, aims to enable Rose Merc to utilize the technology and technical services provided by Virtual. This initiative is subject to the receipt of necessary authorisations and consents from Rose Merc’s shareholders and relevant governmental/regulatory authorities in India.
Key Terms of the Collaboration
The collaboration agreement establishes a strategic partnership involving three parties: Rose Merc Limited, Virtual Gain Technologies Private Limited, and the promoters Amitkumar Singh and Niti Trivedi.According to the agreement, the partnership will involve a 50:50 revenue sharing arrangement between Rose Merc and Virtual. A significant operational term is the appointment of Amitkumar Singh, one of Virtual's promoters, who will serve as a director on the board of Rose Merc and the chief operations officer of the proposed fintech division.
Rose Merc plans to develop its fintech business by undertaking activities such as payment aggregation, payment switching solutions, and payout solutions.
The agreement details that while the collaboration is currently not classified as a related party transaction, it is expected to become one. This change in status is projected to occur upon Rose Merc acquiring a 30.01% shareholding in Virtual and subsequently appointing a majority of directors on Virtual's board.
Financial Snapshot of the Parties
The operational scope of the agreement is supported by the financial histories of both organizations. The following table presents the recent turnover figures for Rose Merc Limited and Virtual Gain Technologies Private Limited.| Company | Financial Year | 3 Years Turnover (Amount in Rupees) |
|---|---|---|
| Rose Merc Limited | 2023-24 | 3,18,03,000 |
| 2024-25 | 3,19,51,000 | |
| 2025-26 | 6,19,16,000 | |
| Virtual Gain Technologies Private Limited | 2023-24 | 64,62,816 |
| 2024-25 | 98,87,703 | |
| 2025-26 | 1,23,75,226 |
Stock Price Movement
As of 12:07, Rose Merc Ltd's shares are ticking down slightly to ₹68.98, having shed 0.01%. The stock has traded a wide range today, swinging between an intraday low of ₹65.00 and a high of ₹69.99.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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