Rane Group announces merger of Rane Brake Lining and Rane Engine Valve into Rane (Madras)

The proposed transaction will create a larger company with a combined turnover of Rs. 3,373 crore for the trailing twelve months period ended December 31, 2023 (i.e., Jan’23 to Dec’23) on a proforma basis.

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The Board of Directors of Rane (Madras) Limited (RML), Rane Brake Lining Limited (RBL) and Rane Engine Valve Limited (REVL), at their respective meetings on February 9, have approved the proposed reorganisation through a merger of RBL and REVL into RML.

The merger significantly simplifies the group structure by consolidating listed operating companies and aligns public shareholders’ interest by converging their stake at a single listed entity, the Group said.

RBL shareholders will receive 21 fully paid-up equity shares of RML for every 20 fully paid-up equity shares of RBL held by them as on the record date. REVL shareholders will receive nine fully paid-up equity shares of RML for 20 fully paid-up equity shares of REVL held by them.

The proposed transaction will create a larger company with a combined turnover of Rs 3,373 crore for the trailing 12-month period ended December 31, 2023 (i.e., Jan’23 to Dec’23) on a proforma basis.

“We welcome the respective Boards’ decision to approve the proposed reorganization which allows all shareholders to participate in the growth of a larger auto component player with diversified product lines with exposure to the attractive automotive industry. The merger will help unlock various synergies among the businesses and will enhance stakeholder value for the long term,” said L Ganesh, Chairman, Rane Group.

The company said simplification of group structure will capture full value of the listed operating businesses of the group by unlocking of synergies leveraging stronger business connect across product lines and enhancing operational and financial efficiencies through scale. Further, creation of a larger entity increases flexibility to raise capital for growth pursuits, both organic and inorganic, the Group said.

“This reorganization scheme demonstrates our commitment to take actions that create value for our shareholders. The transaction simplifies the group structure by bringing together listed operating businesses and creating a platform that is well poised for the next phase of growth,” said Harish Lakshman, Vice Chairman, Rane Group.