Kalyani Steels has announced the conversion of Fully Convertible Debentures (FCDs) of its subsidiary, DGM Realties Private Limited (DGM). The third tranche of 8,630,000 FCDs, each valued at ₹100, has been converted into 8,630,000 equity shares, each at ₹10, with a premium of ₹90 per share, effective September 11, 2025. Following this conversion, Kalyani Steels' holding in DGM has increased to 11,596,000 equity shares, representing 99.91%.
The conversion is a related party transaction, as DGM is a related party of Kalyani Steels, with common control under the Promoter and Promoter Group. The terms of the conversion are at arm's length.
Details of Acquisition and Target Entity
Name of the target entity: DGM Realties Private Limited (DGM)
Industry: Real Estate
Authorized Capital: ₹140 Million
Paid-up Capital (as of March 31, 2025): ₹29.76 Million
Turnover for FY 2024-25: ₹36.01 Million
Objects and Effects of Acquisition
In 2015, Kalyani Steels invested in 13,196,000 FCDs of DGM. DGM holds a 25-acre land parcel near the Bengaluru Mysuru Highway Corridor, identified by Kalyani Steels for its marketing network, business development, service, and distribution center.
Additional Details
Cost of Acquisition: As per the terms, each FCD of ₹100 is converted into one equity share of ₹10 with a premium of ₹90 per share. The cost of acquiring 8,630,000 equity shares is ₹863 Million.
Shareholding: The existing holding of 2,966,000 equity shares, representing 99.66%, has increased to 11,596,000 equity shares, representing 99.91% of the paid-up capital of DGM.
Brief Background of DGM
DGM has been part of the Kalyani Group since its inception and is involved in purchasing land for development or resale, managing construction, and project management activities, with a presence in India.
Date of Incorporation: January 12, 2010
Turnover for the last three years:
- FY 2024-25: ₹36.01 Million
- FY 2023-24: ₹5.71 Million
- FY 2022-23: ₹99.35 Million
Future Conversion
The equity holding of 99.91% in DGM will increase in tranches upon the conversion of the remaining FCDs. The next conversion is scheduled for November 30, 2025, involving 1,600,000 FCDs, which will maintain the company's holding at 99.92%.
No governmental or regulatory approvals are required for this acquisition.
Kalyani Steels' holding in DGM has increased to 11,596,000 equity shares, representing 99.91%.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
