Mallcom (India) Limited to acquire 100% stake in Best Safety Pvt Ltd

The Board of Directors of Mallcom (India) Limited has approved acquisition of 100% stake in M/s. Best Safety Pvt. Ltd. (BSPL) Consequent to the acquisition, M/s. Best Safety Pvt. Ltd. becomes a wholly owned subsidiary of the Company.

BSPL is engaged in manufacturing and export of safety shoes from its SEZ unit located within Falta Special Economic Zone (FSEZ). Since beginning, the entire production of BSPL is being sold through Mallcom (India) Limited (MIL) under third party export provisions. MIL is also operating from FSEZ having its existing unit as well as 100% subsidiary "Mallcom VSFT Gloves Pvt. Ltd." and is engaged in manufacturing and export of PPE range of products. Since all the units are engaged in similar line of business and MIL being the sole exporting entity, it is quite natural and logical to integrate the SEZ operations for better synergy and control of operations. The proposed acquisition and prospective merger of BSPL with MIL will lead to reduction of cost and better profitability and is likely to be a good value addition to the export business.

The Company has already obtained approval from Falta SEZ Authority in terms of Rule 74A of SEZ Rules, 2006 and Provision in para 5(ii) of instruction number 89 dated 17.05.2018. No further regulatory approval required for the acquisition.

Total investment is Rs. 5,33,68,050/- (23,20,350 equity shares at Rs. 23/- per share). The acquisition price is as per valuation report obtained by the Company from competent professional.

Shares of Mallcom (India) Ltd was last trading in BSE at Rs.305 as compared to the previous close of Rs. 306.35. The total number of shares traded during the day was 2556 in over 67 trades.

The stock hit an intraday high of Rs. 315 and intraday low of 300. The net turnover during the day was Rs. 786678.

Source : Equity Bulls

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