Rudra Ecovation Limited, a listed entity, has announced its merger with Shiva Texfabs Limited, an unlisted company, as approved by its Board of Directors on December 23, 2024. This strategic amalgamation is aimed at streamlining operations, improving market leadership, and leveraging operational synergies.
Key Highlights of the Amalgamation:
- Entities Involved:
- Transferor Company: Rudra Ecovation Limited, engaged in synthetic yarn manufacturing.
- Transferee Company: Shiva Texfabs Limited, focusing on recycled polyester staple fiber, synthetic yarn, and textiles.
- Rationale for the Amalgamation:
- Enhanced market leadership in sustainable textiles.
- Integration of value chains, reducing lead times and improving quality.
- Operational efficiencies through economies of scale.
- Alignment with global sustainability commitments, leveraging Shiva Texfabs’ capacity to recycle 4 lakh kg of plastic bottles daily.
- Share Exchange Ratio:
- Shareholders of Rudra Ecovation Limited will receive 0.213 equity shares of Shiva Texfabs Limited for every 1 equity share held.
- Financial Strengths:
- Rudra Ecovation Limited: Total income of ₹1,313.64 lakh (as of September 30, 2024).
- Shiva Texfabs Limited: Total income of ₹21,927.49 lakh (as of September 30, 2024), with a robust recycling capacity.
- Benefits to Stakeholders:
- Enhanced shareholder returns due to a stronger financial profile.
- Streamlined operations and better resource utilization.
- Compliance with global environmental standards, reducing energy consumption and CO2 emissions.
- Approvals Required:
- Regulatory clearances from SEBI, BSE, NCLT, shareholders, and creditors.
This merger highlights Rudra Ecovation’s commitment to creating a sustainable future while aligning with global market demands and environmental priorities. Post-merger, the combined entity is expected to bolster its position as a global leader in sustainable textiles.
