Caspian Corporate Services Ltd to acquire Sumathi Corporate Services Pvt Ltd

The Board of Directors of Caspian Corporate Services Ltd at its meeting held today i.e., Tuesday, 3rd January, 2023, have approved proposal to increase the Authorised Share Capital of the company from Rs. 3,50,00,000/- divided into 3,50,00,000 (Three Crore Fifty Lakh) equity shares of Rs. 1/- each to Rs. 4,51,00,000/- (Rupees Four Crore Fifty One Lakh Only) divided into 4,51,00,000 (Four Crore Fifty One Lakh) equity shares of Rs, 1/- each and the consequent Alteration of Memorandum of Association and Articles of Association of the Company, subject to approval of shareholders of the company.

The board considered the raising of funds and issuance of securities, subject to approval of shareholders, in lieu of acquisition of 100% Equity shares of the group company i.e. Sumathi Corporate Services Private Limited.

The Board has discussed and approved the raising of funds and issuance of securities to acquire 45,00,000 (Forty-Five Lakh) Equity shares of the Company having face value of Rs.10/- each representing 100% paid-up share capital ("Purchase Shares") of Sumathi Corporate Services Private Limited, an existing Group Company, for a total purchase consideration of Rs. 16,20,00,000/- (Rupees Sixteen Crores Twenty Lakhs Only).

The consideration payable shall be discharged by way of issue and allotment of Upto 1,04,58,892 (One Crore Four Lakh Fifty-Eight Thousand Eight Hundred Ninety-Two only) Equity Shares of the Company having face value of Re. 1/- each, at a price of Rs, 12/- per equity share ("Subscription Shares"), ona preferential basis and the balance consideration amounting to INR 3,64,93,296/- payable in cash.

The proposed transaction is being done at "arm's length", taking into account the valuation report issued by M/s VSA Valuers LLP, Registered Valuers, Mumbai, Maharashtra in accordance with the applicable laws.

The board approved issue of 34,86,298 (Thirty-Four Lakh Eighty-Six Thousand Two Hundred Ninety-Eight) Equity Shares of the Company having face value of Re. 1/- each consideration in cash, subject to approval of shareholders and such other regulatory or statutory approvals as may be required, at a price of Rs. 12/- per equity share ("Subscription Shares"), which shall not be less than the floor price as determined in accordance with Chapter V of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018 ("ICDR Regulations"), aggregating upto Rs. 4,18,35,576/- (Four Crore Eighteen Lakh Thirty Five Thousand Five Hundred Seventy Six), for cash consideration on a preferential basis ("Preferential Issue"), and on such terms and conditions as may be determined by the Board in accordance with the SEBI ICDR Regulations and other applicable laws.

The board considered and approved the enhancement of the limit of Board of directors of the company under section 186 of the companies Act, 2013 to make Investments, give Loans, Guarantees and provide Securities exceeding sixty percent of Company's paid up capital and its free reserves and securities premium account or one hundred percent of its free reserves and securities premium account, not exceed an aggregate amount of Rs. 100 Crores, (One Hundred Crores) subject to approval of Shareholders at the ensuring Extra General Meeting.

Shares of Caspian Corporate Services Ltd. was last trading in BSE at Rs. 14.36 as compared to the previous close of Rs. 13.68. The total number of shares traded during the day was 2607 in over 13 trades.

The stock hit an intraday high of Rs. 14.36 and intraday low of 14.36. The net turnover during the day was Rs. 37436.00.

Source : Equity Bulls

Keywords

CaspianCorporateServices INE176N01021 Acquisition SumathiCorporateServices