Rama Steel to acquire 51% in Ashoka Infrasteel and 50% in Hagar Mega Mart

Rama Steel Tubes has acquired 51% stake in Ashoka lnfrasteel, a partnership firm and 50% stake in M/s Hagar Mega Mart by issuance of fresh shares of the company.

The acquisition of Ashoka lnfrasteel enables Rama Steel Tubes to go a step further into the distribution chain and consolidate its market in the galvanized steel pipes segment.

The acquisition of Hagar Mega Mart enables the company to enter into a new segment of Sanitary ware, bathroom accessories, faucets, vanities, sinks & drains in different finishes and varieties.

Total consideration for expansion initiatives is upto Rs 33 crore . The discharge of consideration is through issuance of fully paid of equity shares of RSTL aggregating to maximum amount of Rs 32 crore at a price as may be determined in accordance with SEBI (ICDR) Regulations,2OtB and remaining through cash consideration.

 

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