Strategic Expansion in Finance Sector: Company Acquired 18,000,000 Equity Shares of its Wholly Owned Subsidiary
The stock's 52-week high is Rs 285.25, while the low is Rs 170.65.
Indo Farm Equipment Limited has announced its decision to acquire 18,000,000 equity shares of its wholly owned subsidiary, Barota Finance Limited (BFL), through a rights issue. Each share, with a face value of Rs 10, is priced at Rs 25, including a premium of Rs 15. The total investment amounts to Rs 45 crore. This acquisition is classified as a related party transaction due to common directorships but is exempt from additional compliance under Regulation 23 of the LODR.
BFL operates in the non-banking finance sector, providing financial services for tractors and trade advances. The acquisition aims to bolster BFL's growth in the NBFC sector. The transaction is expected to be completed within 30 days, with the consideration paid via bank transfer. Post-acquisition, Indo Farm will hold 100 per cent of BFL's issued capital, totalling 3,80,00,000 shares.
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About the Company
Indo Farm Equipment Limited is currently trading below Rs 200 per share with a market capitalisation of over Rs 800 crore. The stock's 52-week high is Rs 285.25, while the low is Rs 170.65. Over the past year, the stock has not shown any returns. The price-to-earnings (PE) ratio stands at 95.75, indicating the company's current earnings performance relative to its share price. Indo Farm Equipment Limited continues to focus on strategic investments to enhance its market position in the finance sector.
Disclaimer: The article is for informational purposes only and not investment advice.