Coromandel Engineering sold to Allied Distillers and 3 others for Rs 32.87 cr

Promoters have got out of Coromandel Engineering for an aggregate consideration of Rs 32,87,75,395.50 at a price of Rs 13.50 per equity share.

Coromandel Engineering Company Ltd, a Murugappa Group firm, has changed hands.

The promoters have sold their entire 73.28 percent holdings in Coromandel Engineering to Accord Distillers & Brewers Private Limited, Teyro Labs Private Limited, Jam Hotels and Resorts Private Limited, and Sundeep Anand Jegath Rakshagan.

The promoters held 2,43,53,733 equity shares in the company.

They have got out of Coromandel Engineering for an aggregate consideration of Rs 32,87,75,395.50 at a price of Rs 13.50 per equity share.

The shares have been acquired from 51 individuals and entities belonging to the Murugappa family. However, the share purchase deal with the members and entities of the Murugappa group does not include the holding of the late M.V. Murugappan family, which is a little less than 3 percent in Coromandel Engineering.

Following the sale, the new owners have now come out with an open offer as mandated by the listing regulations of the Securities and Exchange Board of India (SEBI).

The open offer is for the acquisition of up to 84,68,244 fully paid-up equity shares of the face value of Rs 10, representing 25.48 percent of the fully diluted voting share capital of Coromandel Engineering, at an offer price of Rs 13.50 per equity share, from the public shareholders.

Accord Distillers & Brewers Private Limited is in the liquor business and has two production units — one each in Goa and Chennai. Teyro Labs makes active pharmaceutical ingredients (API) and formulations for the pharmaceutical industry. Jam Hotels is in the hospitality industry and operates the Accord brand of hotels in Chennai, Ooty, and Puducherry. Sundeep Anand Jegath Rakshagan is the son of S. Jegathrakshagan.

While the company has communicated the change to the stock exchange, the new owners have announced their open offer to the public through ads.