Announced Tue, 25 Nov · 20:04 IST

Announcement under Regulation 30(LODR) enclosed herewith.

Fund Raising View source PDF

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Awaiting price reaction for this filing.

AI summary

The board of Ace Men Engg Works approved the allotment of 98,16,000 equity shares of face value Rs. 10 at Rs. 64 per share (including Rs. 54 premium) to 34 non-promoter allottees. This is a share swap transaction, not a cash deal, worth Rs. 62.82 crore in total consideration. In exchange, the company is acquiring 9,81,600 equity shares (100%) of Manibhadra Industries Pvt Ltd (MIPL) at Rs. 640 per share. BSE had already given in-principle approval. As a result of the acquisition, MIPL — which operates in the lighting, wires, cables, fans, and high mast business — becomes a wholly-owned subsidiary of Ace Men Engg Works. No cash is being used; the deal is entirely funded through share issuance.

Likely market impact

Shareholders should note dilution from the issuance of nearly 98.16 lakh new equity shares, but the company expands its footprint into the lighting and electrical products sector via a cashless acquisition. The deal adds a new subsidiary without straining the company's cash reserves, though integration risk and the strategic fit remain to be seen.