Greenlam Industries Limited to acquire 74.91% stake in HG Industries Ltd

The Board of Directors of Greenlam Industries Limited ("Company") in their Meeting held on August 28, 2021, has considered, and approved the acquisition of 34, 70,966 equity shares representing 74.91% of the voting share capital of HG Industries Limited ("HGIL") (Formerly Himalaya Granites Limited) at a price of Rs. 40.11 per equity share from Mr. Saurabh Mittal, Ms. Parul Mittal, Mr. Shiv Prakash Mittal and S.M. Safeinvest Private Limited (each a "Seller" and collectively the "Sellers"), who are part of the promoter and promoter group of HGIL ("Proposed Acquisition").

The board approved execution of Share Purchase Agreement ("SPA") between the Company and the Sellers for the purpose of the Proposed Acquisition.

An open offer is to be made for acquisition of the entire public shareholding of HGIL up to 11,62,602 equity shares of HGIL representing 25.09% of the voting share capital of HGIL at a price of Rs. 41.00 per equity share in terms of Regulations 3(1) and 4 of the SEBI {Substantial Acquisition of Shares and Takeover) Regulations, 2011 as amended, pursuant to the Proposed Acquisition ("Open Offer")

Upon the consummation of the Proposed Acquisition and the Open Offer, the Company will acquire control over HGIL and HGIL will become a subsidiary of the Company.

HGIL currently does not have any manufacturing operations and is engaged in the activities of renting and/or leasing of immovable properties. Further, HGIL is exploring to venture into, all or any, of the business of manufacturing, marketing and trading of wood and paper-based products.

The objective of the acquisition is setting up manufacturing facilities on the properties of HGIL and expansion of business of the Company. In addition, the Company may also consider disposing off the office space of HGIL. Further, the Acquirer may, subject to applicable law, also consider the merger of HGIL with Acquirer post the completion of the Open Offer and consummation of the Proposed Acquisition in terms of the SPA.

Shares of Greenlam Industries Ltd was last trading in BSE at Rs. 1360 as compared to the previous close of Rs. 1362.05. The total number of shares traded during the day was 135 in over 64 trades.

The stock hit an intraday high of Rs. 1371.45 and intraday low of 1359.85. The net turnover during the day was Rs. 183891.

Source : Equity Bulls

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