Revised outcome of Board Meeting held on April 23, 2025
PRAVEG · price
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Praveg Limited's board approved a draft Scheme of Amalgamation to merge Eulogia Inn Private Limited (an unlisted hospitality company) into Praveg Limited under Sections 230-232 of the Companies Act, 2013. The share exchange ratio is 1000 Praveg equity shares (Rs. 10 face value) for every 6683 Eulogia Inn equity shares (Rs. 10 face value). Eulogia Inn had revenue of Rs. 751.45 lakhs and net worth of Rs. 1,852.40 lakhs as of Feb 28, 2025, versus Praveg's revenue of Rs. 11,831.02 lakhs and net worth of Rs. 45,045.31 lakhs. The transaction is not a related party transaction, and the rationale cites business synergies, cost savings, and combined economies of scale in the hospitality sector. The board also approved applying for listing on NSE (currently listed only on BSE). Post-merger, promoter holding will rise from 45.50% to 50.23%, while total equity shares will increase from ~2.61 crore to ~2.79 crore.
The merger expands Praveg's hospitality business and is expected to bring operational synergies, but existing Praveg shareholders face ~6.8% dilution from new share issuance. The proposed NSE listing could boost liquidity and investor reach. Scheme still needs NCLT, BSE, and shareholder approvals before becoming effective.