PH Trading Limited announced today that its Board of Directors has approved several significant business decisions, including multiple acquisitions in the jewelry retail sector totaling approximately ₹75 crore and changes to executive compensation.
In a board meeting held on January 3, 2025, the company approved the acquisition of eight jewelry businesses, including partnership firms, LLPs, and private limited companies, all related to its promoters. The most notable acquisition is Vega Jewellers, a partnership firm with an annual turnover of approximately ₹679 crore in FY 2023-24, which will be acquired for up to ₹45 crore.
The company will also acquire a 51% stake in Vega Jewellers J Hills LLP for up to ₹25 crore. This entity reported a turnover of ₹375.5 crore in FY 2023-24, showing significant growth from ₹152 crore in the previous year.
Additionally, PH Trading will acquire majority stakes in several newly established entities:
– Vega Jewellers KKD LLP (58%) for up to ₹2 crore
– Vega Jewellers DSNR LLP (58%) for up to ₹65 lakhs
– Vega Jewellers ELR LLP (60%) for up to ₹70 lakhs
– Diamond Nest Private Limited (100%) for up to ₹15 lakhs
– Vega Jewellers Gold and Diamonds Private Limited (100%) for up to ₹55 lakhs
– Vega Jewellery Mart Private Limited (100%) for up to ₹40 lakhs
These acquisitions, all classified as related party transactions, will be completed within three to six months and will be funded through cash payments. The board noted that these moves align with the company’s overall corporate objective and business expansion plans.
The board also approved an increase in remuneration for Managing Director Mr. Naveen Kumar Vanama and Executive Director Mr. Sudhakar Vanama. These decisions will be presented for shareholder approval at an Extraordinary General Meeting scheduled for January 30, 2025.
All acquisitions will be executed at arm’s length pricing, and no governmental or regulatory approvals are required for these transactions.
