Company Snapshot: – Rane (Madras) Limited (RML)
RML is a key player in India’s auto component sector. A subsidiary of Rane Holdings Limited, the company manufactures high-quality:
-
Steering & Suspension Linkage Systems
-
Steering Gears
-
High Precision Aluminium Die Cast Components
-
Engine Valves & Guides
-
Brake Linings, Pads, Shoes & Railway Brake Blocks
📈 Turnover (INR Cr):
-
2024: ₹2,142.25 Cr
-
2023: ₹2,123.55 Cr
-
2022: ₹1,555.00 Cr
💰 Net Worth (2024): ₹261.54 Cr
📍 Presence: India
📆 Incorporated: March 31, 2004
📄 Detailed Summary:
Rane Holdings Limited (RHL) has announced the allotment of 59,58,439 equity shares of ₹10 each in Rane (Madras) Limited (RML) on April 23, 2025. This strategic allotment is part of a larger Scheme of Amalgamation involving Rane Engine Valve Ltd. and Rane Brake Lining Ltd. merging into RML.
Post-allotment, RHL’s stake stands at 63.80% in the newly amalgamated equity structure. This restructuring facilitates streamlined operations under one diversified auto-component entity, allowing enhanced focus and better value realization for shareholders.
Shares were exchanged at a fair valuation of ₹925.60, based on a certified Joint Valuation Report. Importantly, this is a related party transaction but was executed at arm’s length, ensuring fairness to all shareholders.
✅ Key Highlights in Bullet Format (Styled with Symbols)
🔹 Date of Allotment: April 23, 2025
🔹 Shares Allotted: 59,58,439 equity shares (Face Value: ₹10)
🔹 Post Allotment Holding: 63.80% of RML’s equity capital
🔹 Fair Value of Shares: ₹925.60 per share
🔹 Valuation by: PwC & Bansi S. Mehta LLP
🔹 Exchange Ratio:
-
🔁 21 RML shares for 20 in Rane Brake Lining
-
🔁 9 RML shares for 20 in Rane Engine Valve
🔹 Industry: Auto Components
🔹 Objective: Consolidation under a single listed auto-component player
🔹 Benefit: Better growth participation and operational efficiency
🔹 Transaction Nature: Related Party – At Arm’s Length
🔹 Approvals Required: None
🔹 Impact on Voting Rights: Aligned with shareholding change
🔹 RML Turnover (FY24): ₹2,142.25 Cr
📊 Effect on Share Market
📉 Short Term:
Mild volatility may be observed as the market adjusts to the new equity structure.
📈 Long Term:
Stronger fundamentals, efficient structure, and improved governance post-amalgamation may boost investor confidence and valuations.
👥 How It Helps Retail Traders
-
🔍 Better Transparency: Simplified corporate structure
-
📊 Informed Decisions: Access to consolidated financials
-
💡 Potential Value Upside: Stronger entity with economies of scale
-
🧭 Stable Management: No change in control ensures continuity
💬 Phrase:
“One move, multiple gains – discover how Rane’s restructuring creates value for every stakeholder!”
📉 Stock Market Disclaimer
Disclaimer: This post is for informational and educational purposes only and does not constitute financial advice or a recommendation to buy/sell any stock or share. Investing in the stock market involves risk. Past performance is not indicative of future results. Always conduct your own research or consult a licensed financial advisor before making investment decisions.
