Rane Group completes its consolidation exercise

In continuance of the consolidation exercise undertaken amongst the Rane Group companies, the Honorable High Court of Madras sanctioned on 20th December 2007 the “Scheme” of Demerger, Merger and Amalgamation among Rane Engine Valves Limited, Rane Brake Linings Limited and Rane Holdings Limited. 

The “Scheme”, which was earlier approved by the shareholders of the respective companies, envisages the following:

a)    Demerger  of the manufacturing activities of Rane Engine Valve Limited (REVL) into a new company  named as “RANE ENGINE VALVE LIMITED”

b)  Demerger of the manufacturing activities of Rane Brake Linings Limited (RBL) into a new company named as “RANE BRAKE LINING LIMITED”.

c)   Merger of the remaining businesses of REVL and RBL, which consist of investments in Rane companies and some immovable properties into Rane Holdings Limited.

The “Scheme” is being implemented with retrospective effect from 1st April 2007 and has become operational on 6th February 2008 on completion of statutory formalities post the High Court approval.

Consequent to impletion of the “Scheme” the shareholders of REVL and RBL will be allotted new shares, in lieu of their existing shares, in the following proportion:

a)    Shareholders of REVL will be allotted one equity share in the new RANE ENGINE VALVE LIMITED and 0.56 shares in RANE HOLDINGS LIMITED for every one share held in REVL.

b)    Shareholders of RBL will be allotted one equity share in the new RANE BRAKE LINING LIMITED and 0.75 shares in RANE HOLDINGS LIMITED for every one share held in RBL.

The Record date for allotment of the new shares has been fixed as 22^nd February 2008.

The Companies will submit their formal applications to the Stock Exchanges for listing the new shares immediately on allotment and these are expected to be listed for trading in about a month’s time thereafter.

With implementation of the above “Scheme” Rane would have substantially completed the shareholding restructuring exercise which they embarked upon  in 2004 with the objectives of  elimination of cross holdings and consolidation of promoter stake and the holdings in the operating companies in  Rane Holdings Limited as the apex holding company of the Group.  Rane believes the exercise will result in unlocking of value for the shareholders of all listed companies of the Group.

Sourced From: Sampark Public Relations Pvt Ltd