RHI Magnesita India Limited (RHIM) announced on 28 May 2025 that its Board of Directors has approved an investment of approximately ₹ 2.5 crore in its 100% wholly-owned subsidiary, Intermetal Engineers (India) Private Limited.
Key details of the investment include:
- The investment involves the subscription of up to 150 equity shares via a rights issue.
- Each share is priced at ₹ 1,66,475, which includes a premium of ₹ 1,66,375 per share.
- The proceeds from this rights issue will be utilized by Intermetal Engineers for general corporate purposes and to partially finance its proposed acquisition of Ashwath Technologies Private Limited, subject to the execution of definitive agreements.
- This investment aligns with RHI Magnesita India's strategic objective of strengthening its industry position through its subsidiary.
- Intermetal Engineers (India) Private Limited, incorporated on 20 May 1988, is primarily engaged in the manufacturing and sale of slide gate mechanics and related components.
- The turnover of Intermetal Engineers for the financial year ended 31 March 2025 was ₹ 611.76 lakh. Its turnover for 31 March 2024 was ₹ 665.33 lakh and for 31 March 2023 was ₹ 533.61 lakh.
- The transaction is considered a related party transaction but is conducted at arm's length.
- The acquisition is expected to be completed on or before 30 June 2025.
- There will be no change in the controlling stake of RHI Magnesita India in Intermetal, which will continue to remain a wholly-owned subsidiary.