M&A Magazine

The Board of Directors of Century Textiles and Industries Limited (Century) had approved a Scheme of Arrangement between the Century, UltraTech Cement Limited (UltraTech) , and their shareholders and creditors for the demerger of its cement division into UltraTech. Ultratech , a part of Aditya Birla Group, is the largest manufacturer of grey cement, Ready Mix Concrete (RMC) and white cement in India. It is also one of the leading cement producers globally. UltraTech Cement has 19 integrated plants, one clinker plant, 25 grinding units and seven bulk terminals. Its operations span across India, UAE, Bahrain, Bangladesh and Sri Lanka. UltraTech Cement is also India's largest exporter of cement reaching out to meet the demand in countries around the Indian Ocean and the Middle East. Century incorporated in 1897 as a Public Limited Company the company operated only one cotton textile mill at Mumbai till 1951. Thereafter, it has expanded and diversified its activities. Curre...

Valiant Organics Ltd. (VALIANT) was established in the year 1985 under the name of Valiant Chemical Corporation, with a single product, viz., meta chloroaniline. The company was the major manufacturer of the same in India till 1999. Later, the company expanded its product range to include chlorophenols, a chemical mainly used as intermediates in pharmaceuticals, pesticides, disinfectants, anti-bacterial and veterinary. Currently, Valiant Organics Ltd. is one of the major suppliers of chlorophenols in India and abroad. Valiant Organics' production site is situated at Sarigam Industrial Estate in Gujarat. Amarjyot Chemicals Limited (ACL) is one of the leading manufacturers and suppliers of speciality chemicals. It is headed by first generations of technocrats. Amarjyot plants are located at Vapi, Jhagadia and Ahmedabad in Gujarat. ACL produces Ammonolysis, Hydrogenation, Nitration, Sulphonation, Acetylation reactions at it units. Some of the products are as: Dye intermediate:...

Paisalo Digital Limited Paisalo Digital Limited (Paisalo) is a Non-Deposit Taking Systemically Important Non-Banking Finance Company (ND-SI-NBFC) engaged in lending to individuals, SSIs, SMEs and other manufacturing, trading and service sector entities/ organisations for income generation activities. The shares of the company are listed on BSE, NSE and Depository Receipts on Luxembourg Stock Exchange. Earlier this year, the company changed its name from S.E. Investments Limited to Paisalo Digital Limited. Agarwal Meadows Private Limited Agarwal Meadows Private Limited (AMPL) is Delhi based company, engaged in the business of renting of commercial property. Substantial stake of AMPL is held by promoter entity of Paisalo. Proposed Transaction The Board of Directors of the company in their meeting held on February 23, 2018 approved the scheme of Amalgamation of AMPL with Paisalo. Appointed date for the transaction is closing hours of December 31, 2017. Swap Ratio ...

Section 66 of the Companies Act, 2013 allows companies to reduce their share capital. The scheme of Reduction of share capital is undertaken by companies in the following manner: Company can extinguish or reduce its liability on its unpaid share capital. Company can extinguish or reduce its liability on its paid share capital by cancelling it which is lost or which is not representing its available assets. Company can even pay off to its shareholders excess paid-up capital received from them if that is not required to the Company. Companies opt for reduction of their share capital either to create/ increase distributable reserves for them or to reduce their accumulated losses. Sagar Soya Products Limited , a company listed on Bombay Stock Exchange has proposed reduction of its share capital under section 66 of the Act. The present equity paid up share capital of the Company is Rs. 5,85,16,890 divided into 5851689 equity shares of Rs. 10/- each. The Company is into the bus...

Special Purpose Acquisition Vehicles ( SPACs ) have emerged as a promising option to raise public funding from offshore markets. They are especially suited for start-ups, who otherwise find it difficult to excite the conservative Indian retail investors. This has become all the more critical as there is evidence that private funding may be drying up and it may be a while before it returns as a substantial source of capital for start-ups. With SPACs, the start-up gets listed through a reverse merger with a listed shell company, i.e., the SPAC, which acquires the start-up. Indian laws also need to be suitable amended to facilitate overseas fundraising by startups. SPACs regulatory evolution- globally Globally, SPAC regulations have evolved over the past many years. SPAC structures are more shareholder friendly and have ample fail-safe measures to prevent fraud. Lock-in periods ensure that founders have some “skin in the game” and minimize agency costs. Successful SPAC listings...

At a time when Indian individuals are increasingly investing in mutual funds to build long-term corpus and assets under management (AUM) of the industry are growing rapidly, there are ownership changes happening in India mutual fund industry. With DSP Group -- headed by Hemendra Kothari -- buying out BlackRock’s 40% stake in joint venture , there has been over 25 ownership changes in India’s mutual fund companies in the past 10 years. These range from foreign companies selling stake to local companies, to foreigners buying stakes in home-grown ones. BlackRock saga BlackRock is the world's largest asset managers and the joint venture with DSP group, a homegrown company, had become the ninth largest mutual fund company in the country. BlackRock had agreed to sell its 40 per cent interest in DSP BlackRock, which in total, manages assets of over Rs 1.1 lakh crore. Both the companies did not disclose the details of the deal. In fact, initially BlackRock was in talks with DSP for ...