Sindhu Trade Links Ltd Increases Share Capital and Approves Major Acquisitions in Resource Sector
Sindhu Trade Links Limited (STLL) is set to undergo a significant corporate restructuring alongside two major strategic acquisitions as it convenes an Extraordinary General Meeting (EGM). The EGM aims to approve substantial increases in authorized share capital, which will facilitate the company's planned purchases of stakes in Advent Coal Resources Pte. Ltd and Sainik Mining and Allied Services Limited.The proposed transactions are crucial steps in STLL’s growth strategy, allowing the company to acquire strategic assets and businesses critical for future expansion by utilizing non-cash consideration.
Capital Restructuring and Transaction Overview
To accommodate the planned issuances, STLL plans to increase its authorized share capital substantially. The current authorized capital of INR 156,00,00,000/- divided into 156,00,00,000 equity shares of INR 1/- each will be raised to INR 196,00,00,000/-. This new structure will consist of 186,00,00,000 equity shares and 10,00,00,000 Compulsory Convertible Preference Shares (CCPS) of INR 1/- each.The EGM is scheduled to address two key material related party transactions: the acquisition of a stake in Advent Coal Resources Pte. Ltd., and the acquisition of a substantial holding in Sainik Mining and Allied Services Limited. Both acquisitions are being executed on an arm's length basis and have received prior approval from STLL’s Audit Committee and Board of Directors.
Acquisition of Stake in Advent Coal Resources Pte. Ltd.
STLL plans to acquire 78.26% equity shareholding in Advent Coal Resources Pte. Ltd., Singapore, for a total consideration of INR 697.056 Crore. The acquisition is being financed through the preferential issue of equity shares of STLL to the specific sellers.The issuance involves alloting a total of 30,04,55,030 Equity Shares. The price for the allotment was determined based on market data from the National Stock Exchange (NSE), reflecting the higher value between the 90 trading days' volume weighted average price and the 10 trading days' volume weighted average price.
The pricing resulted in a final issue price of INR 23.13/- per Equity Share. The proposed allottees, which include Indo Pacific Partners (PTC) Limited, Astrea Fund Limited, RMK Investments Pte. Ltd., Sub Rosa Partners Pte. Ltd., Artham Resources Management - FZCO, and Sharifah Binti Syed Mohamad, will collectively hold 15.49% of the post-issue shareholding in STLL.
Table: Equity Allotment for Advent Coal Resources Pte. Ltd.
| Sr. No. | Name of Proposed Allottees | Number of Equity Shares to be Allotted | Total Consideration (INR Crore) | Post Issue Shareholding (%) |
|---|---|---|---|---|
| 1. Indo Pacific Partners (PTC) Limited | 20,60,53,398 | 478.044 | 10.62 | |
| 2. Astrea Fund Limited | 7,51,63,903 | 174.380 | 3.88 | |
| 3. RMK Investments Pte. Ltd. | 72,02,752 | 16.710 | 0.37 | |
| 4. Sub Rosa Partners Pte. Ltd. | 48,13,991 | 11.168 | 0.25 | |
| 5. Artham Resources Management - FZCO | 48,13,991 | 11.168 | 0.25 | |
| 6. Sharifah Binti Syed Mohamad | 24,06,995 | 5.584 | 0.12 | |
| Total | 30,04,55,030 | 697.056 | 15.49 |
Acquisition of Stake in Sainik Mining and Allied Services Limited
For Transaction B, STLL will acquire 50.1% equity shareholding in Sainik Mining and Allied Services Limited through a share swap. This acquisition is being financed by the issuance of 0.1% CCPS (Cumulative Compulsorily Convertible Preference Shares) to its existing shareholders. The total consideration for this acquisition stands at INR 225.45 Crore.The company will allot 97,176,757 CCPS units. These instruments are structured with a Face Value of INR 1/- per CCPS and an Issue Price of INR 23.20/-, comprising a premium of INR 22.20/. The CCPS is designed to be convertible into equity shares at a ratio of 1:1, ranking equally with existing equity shares upon conversion, within a maximum tenure of 18 months from the allotment date.
The concentration of the acquisition among various sellers demonstrates significant promoter interest. Detailed below are the allotments and corresponding post-conversion holding percentages for the CCPS in this transaction:
Table: CCPS Allotment for Sainik Mining and Allied Services Limited
| Sr. No. | Name of Proposed Allottees | Pre-issue Shareholding (%) | Number of CCPS to be Allotted | Post conversion Shareholding (%) |
|---|---|---|---|---|
| 1. Sainik Mining India Private Limited (SMIPL) | 0 | 46,551,740 | 2.40% | |
| 2. Rudra Sen Sindhu | 5.70 | 13,569,587 | 5.23% | |
| 3. Vir Sen Sindhu | 7.01 | 10,438,168 | 6.11% | |
| 4. Vrit Pal Sindhu | 7.22 | 8,350,525 | 6.17% | |
| 5. Abhimanyu Sindhu | 5.31 | 7,306,704 | 4.59% | |
| 6. Satyapal Sindhu | 6.55 | 5,740,972 | 5.51% | |
| 7. Dev Sindhu | 5.66 | 5,219,061 | 4.77% | |
| Total | 37.45 | 97,176,757 | 34.78% |
Pricing and Governance Details
The company confirmed that the proposed preferential allotment of Equity Shares and CCPS does not result in a change in control. Regarding pricing, STLL noted that since its shares have been listed for over 90 trading days on both NSE and BSE, certain re-computation requirements under regulatory frameworks are not applicable. Furthermore, an independent valuation report was obtained from Mr. Rajan Sahdev of Resurgent India Limited, which indicated the equity share price at INR 23.13/- per share.The EGM is set to approve these strategic actions that strengthen STLL’s business portfolio through diversification and resource acquisition.
SINDHUTRAD Stock Price Movement
Shares of Sindhu Trade Links Limited are edging higher to ₹24.66 as of 10:32 AM today, rallying by 1.27% in live trading. The stock currently traded 76,493 shares during the market 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.
The information provided is for general informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. Readers are advised to rely on their own assessment and judgment and consult appropriate financial advisers, if required, before taking any investment-related decisions.
Any views, opinions, or statements expressed, where applicable, are those of the respective analysts or experts and do not reflect the views of this website. The website has no association with such viewpoints and does not assume any responsibility for them.