Sureshbabu Malge completed the acquisition 2.53% stake in Amarnath Securities Limited for INR 1.4 million.
December 01, 2020
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Sureshbabu Malge made an offer to acquire 26% stake in Amarnath Securities Limited (BSE:538465) for INR 12.8 million on July 23, 2019. Under the terms of transaction, Sureshbabu Malge is offering a price of INR 16.45 per share to acquire 0.78 million shares of Amarnath. As of November 6, 2020, the bid price increased to INR 18.13 per share. The consideration will be paid on December 16, 2020. Upon successful completion of offer and share purchase agreement, Sureshbabu Malge will hold 74.72% stake in Amarnath Securities Limited. In a related transaction, Sureshbabu Malge entered into share purchase agreement to acquire 48.72% stake in Amarnath Securities Limited from Omkar Pravin Herlekar for INR 24.04 million on July 23, 2019. The transaction will be funded by own sources/networth and no borrowings from bank and/or financial institutions. Sureshbabu Malge intends to make changes in the Board of Amarnath Securities Limited.
The offer is subject to compliance with the SAST Regulations. The agreement may be completed prior to completion of the open offer. The offer is subject to receiving statutory approval and other necessary approvals. As per the update on November 11, 2019, the transaction is subject to approval from Reserve Bank of India and due to this the completion of transaction may delay. The offer is not conditional upon any minimum level of acceptance. The deal received approval from RBI on October 29, 2020. All the statutory approvals required for the transaction have been obtained. The recommendations of Committee of Independent Directors of Amarnath Securities Limited shall be obtained by November 13, 2020. As on November 13, 2020, Independent Directors of Amarnath Securities recommended the transaction. The offer period will commence on September 18, 2019 and close on October 1, 2019. As of November 6, 2020, the offer will run from November 18, 2020 to December 2, 2020. Tanmoy Banerjee of CAPITALSQUARE ADVISORS PRIVATE LIMITED acted as the financial advisor to Sureshbabu Malge. Ashok Shetty and Arvind Tandel of Bigshare Services Private Limited acted as registrars to Sureshbabu Malge.
Sureshbabu Malge completed the acquisition 2.53% stake in Amarnath Securities Limited (BSE:538465) for INR 1.4 million on December 2, 2020. During the offer, 75,830 shares were tendered and accepted. Post-closing, of offer and share purchase agreement, Sureshbabu Malge holds approximately 1.54 shares representing 51.25% stake in Amarnath Securities Limited. Consideration payment will be settled on December 11, 2020.
Amarnath Securities Ltd is a non-banking financial company. It is in the business of merchant banking in all its aspect to act as managers to issues and offers, whether by way of public offer or otherwise, of shares, stocks, debentures, bonds, units, participation certificates, deposits, certificates, notes, bills, warrants or any other paper or scripts. It also acts as agents or dealers in the securities in the course of merchant banking business to act as financial consultants, joint managers, lead managers, co-managers, advisors and counselors in investment and capital markets, to underwrite, sub underwrite or to provide stand by or procurement arrangement, to issue guarantees or to give another commitments for subscribing or agreeing to subscribe or procure or agree to procure subscription for the securities, to become corporate member of any stock exchange and to act as share and stock broker to subscribe, invest, acquire, purchase, hold, sell or otherwise.
AMARNATH SECURITIES LIMITED 
