Intimation under Regulation 30 of the SEBI (LODR) Regulations, 2015
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The RBI has rejected the application seeking approval for change in shareholding and control of the company in favour of Morabia Enterprise Private Limited, Mr. Mahendra Harajivan Morabia, and persons acting in concert. Following this rejection, the Board has decided not to allot equity shares to the Morabia group (the first 10 proposed allottees named in the EGM notice), while reserving their legal rights. The Board will proceed with the preferential issue to the remaining 29 proposed allottees (public/non-promoter category, serial no. 11 to 39 in the EGM notice). Proceeds from this revised issue will be used for repayment of loans and liabilities, general corporate purposes, and business expansion.
The proposed takeover by the Morabia group is effectively blocked, which is a setback for that acquirer, but the company still raises fresh capital from other investors to deleverage and fund growth. Shareholders should note that the original change-of-control deal will not go through, though the stock may see limited impact since the capital raise continues with a different investor set.