Outcome of Board Meeting - Scheme of Amalgamation
Awaiting price reaction for this filing.
Capricorn Systems Global Solutions Limited's board has approved the amalgamation of Radical Bio-Organics Limited (Transferor Company) into Capricorn (Transferee Company). Under the scheme, Radical Bio-Organics shareholders will receive 1 equity share of Capricorn for every 1 share held. Radical Bio-Organics is significantly larger, with turnover of Rs. 451.86 crore versus Capricorn's Rs. 20.74 crore, and net worth of Rs. 71.80 crore versus Rs. 26.33 crore. The merger aims to diversify Capricorn's commodity trading business into distillery product manufacturing (ENA, DDGS, CO2), achieve operational and cost synergies, and strengthen the combined entity's financial profile. The transaction is not a related party transaction. Upon effectiveness, Radical Bio-Organics shares will be extinguished and new shares issued to its shareholders.
This reverse merger significantly enlarges Capricorn's scale with 22x higher turnover and 2.7x higher net worth, potentially boosting market capitalisation and share liquidity. The 1:1 share exchange ratio is favourable for Radical Bio-Organics shareholders given its larger size.