In February last year, the Rane Group had announced the merger of Rane Brake Lining and Rane Engine Valve into Rane (Madras) to create a unified platform that will enable future growth.
The reorganisation will bring all operating subsidiaries under one single entity, which will have a combined turnover of ₹3,373 crore for the trailing 12-month period that ended in December 2023, the Rane Group had said in a statement last year.
As per the scheme of arrangement, this will help simplify the group structure to capture the full value of the listed operating businesses of the group, unlock synergies across product lines and enhance operational and financial efficiencies and the large entity will also increase flexibility to raise capital for both organic and inorganic growth.
The scheme of arrangement had received approval from the National Company Law Tribunal (NCLT) in March this year.
Entitlement Ratio
Shareholders of Rane Brake Lining will receive 21 fully paid-up equity shares of Rane (Madras) Ltd., for every 20 shares they hold as on the record date.
Shareholders of Rane Engine Valve will receive nine fully paid-up equity shares of Rane (Madras) Ltd., for every 20 shares they hold as on the record date.
The record date to determine the eligibility of these shareholders of both the companies, has been fixed for Tuesday, April 22.
Shares of Rane (Madras) Ltd. have gained 7% in the last one month, but have corrected 54% from their 52-week high.
Shares of Rane Brake Lining Ltd. have gained 5% in the last one month, but have also corrected over 45% from their 52-week high.
Shares of Rane Engine Valve Ltd. have surged 9% in the last one month, but similar to Rane (Madras) has corrected over 50% from its 52-week high.
