Murudeshwar Ceramics Ltd acquires shares in RNS Power Ltd

Murudeshwar Ceramics Ltd has purchased shares of RNS Power Limited (a Group Company) to become a Captive Buyer of power under the Electricity Act, 2003 read with the Electricity Rules, 2005".

RNS Power Limited (RNSPL): RNSPL is a group Indian company incorporated under the companies act, 1956 on 26.11.2012 and at present RNSPL is engaged in power generation through wind.

The purchase of equity shares an arm's length basis of RNSPL would fall within related party transaction because RNSPL is Group Company of Murudeshwar Ceramics Limited (MCL) and Shri Satish Rama Shetty - Vice Chairman and Managing Director, Shri Sunil Rama Shetty - Director, Shri Naveen Rama Shetty - Director are the Directors and members of RNSPL. They also belong to promoter and promoters' group of RNSPL and MCL.

The main object for purchase of shares of RNS Power Limited (a Group Company) to become a Captive Buyer of power (Captive user) under the Electricity Act, 2003 read with the Electricity Rules, 2005 as under.

The requirements of Captive Generating Plant. - (1) No power plant shall qualify as a 'captive generating plant' under section 9 the Electricity Act, 2003 read with clause (8) of section 2 of the Act unless- (a) in case of a power plant -

(i) not less than twenty six percent of the ownership is held by the captive user(s), and

(ii) not less than fifty one percent of the aggregate electricity generated in such plant, determined on an annual basis, is consumed for the captive use:

Before this transaction for purchase of equity shares, MCL is holding 6.14% of equity shares in RNSPL and after purchase 237200 equity shares of RNSPL, the total holding will be 26.10% of equity shares of RNSPL as require for becoming Captive Buyer of power (Captive user) under the Electricity Act, 2003 read with the Electricity Rules, 2005.

Moreover, RNSPL will be considered as an Associate Company of MCL in term of section 2(6) of the Companies Act, 2013.

Shares of MURUDESHWAR CERAMICS LTD. was last trading in BSE at Rs.28.55 as compared to the previous close of Rs. 28.3. The total number of shares traded during the day was 14429 in over 188 trades.

The stock hit an intraday high of Rs. 29.1 and intraday low of 28.2. The net turnover during the day was Rs. 414327.

Source : Equity Bulls

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