Preferential issue of up to 27,51,51,600 shares at Rs. 1 each via share swap to acquire 100% of Rajal Lefin & Commercial
Sharp Investments has disclosed the object of a proposed preferential issue.
- Shares to be issued
- up to 27,51,51,600 equity shares of Rs. 1/- each
- Acquisition target
- 45,85,860 equity shares of Rajal Lefin & Commercial Private Limited (100% of paid-up capital)
- Largest allottee
- Burnpur Power Pvt Ltd with 8,43,00,000 shares
- Allotment timeline
- within 15 days of shareholders' / in-principle approval, whichever is later
- Consideration structure
- share swap (for consideration other than cash)
What was shared
Sharp Investments Limited has made a disclosure under Regulation 30 stating the object of a proposed preferential issue of equity shares.
The issue is for consideration other than cash, structured as a share swap. The company proposes to issue up to 27,51,51,600 equity shares of face value Rs. 1/- each at an issue price of Rs. 1/- per share, determined in accordance with Chapter V of the SEBI (ICDR) Regulations, 2018.
Object of the issue
The stated object is specifically the acquisition of 45,85,860 equity shares of M/s Rajal Lefin & Commercial Private Limited (RLCPL), which is equivalent to 100% of RLCPL's paid-up share capital. In other words, RLCPL's shareholders receive Sharp Investments shares instead of cash, and RLCPL becomes wholly owned by the company.
Proposed allottees (all non-promoter)
- Burnpur Power Private Limited — 8,43,00,000 shares
- Wonderland Paper Suppliers Private Limited — 6,21,70,560 shares
- Multifold Plastic Marketing Private Limited — 4,10,03,880 shares
- Pears Mercantiles Private Limited — 2,81,71,680 shares
- Shree Nidhi Trading Co Limited — 2,40,00,000 shares
- Shreyans Embroidery Machine Private Limited — 2,35,05,480 shares
- Kwality Credit & Leasing Limited — 1,20,00,000 shares
- Total — 27,51,51,600 shares
Timeline
Allotment is proposed within 15 days from shareholders' approval, or in-principle approval by the stock exchange, or any other regulatory approval if required, whichever is later.
How investors may read it
This is a proposal, not a completed transaction, and it depends on shareholder and exchange approvals. Two things matter for existing shareholders: the company would gain full ownership of RLCPL without paying cash, and a large number of new shares would be created, which dilutes the holding percentage of current shareholders. The seven proposed allottees are classified as non-promoters, so the shareholding pattern would change materially if the issue goes through.
More numbers
- Shares proposed to be issued (preferential)27,51,51,600
- Issue price per shareRs. 1/- (Rupees One Only)
- RLCPL shares to be acquired45,85,860 equity shares
- Stake in RLCPL to be acquired100%
- Allotment timeline after approvalWithin 15 days
- Burnpur Power Private Limited — shares8,43,00,000
- Wonderland Paper Suppliers Private Limited — shares6,21,70,560
- Multifold Plastic Marketing Private Limited — shares4,10,03,880
- Pears Mercantiles Private Limited — shares2,81,71,680
- Shree Nidhi Trading Co Limited — shares2,40,00,000
- Shreyans Embroidery Machine Private Limited — shares2,35,05,480
- Kwality Credit & Leasing Limited — shares1,20,00,000
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