Kajaria Ceramics Limited agreed to acquire Kajaria Securities Pvt. Ltd. for INR 39.3 billion.
July 10, 2016
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Kajaria Ceramics Limited (BSE:500233) agreed to acquire Kajaria Securities Pvt. Ltd. for INR 39.3 billion on July 11, 2016. As of January 24, 2017, 1 fully paid up equity share of Kajaria Ceramics will be issued and allotted to the shareholders of Kajaria Securities in proportion of their respective shareholding in Kajaria Securities for every 1 fully paid up equity share held by Kajaria Securities in Kajaria Ceramics. Therefore 32.06 million fully paid up equity shares of Kajaria Ceramics will be issued and allotted to shareholders of Kajaria Securities. The deal value for the deal is INR 39.3 billion. On completion, Kajaria Securities shall be dissolved without going through the process of winding up. All staff and employees of Kajaria Securities in service on such date shall be deemed to have become staff and employees of Kajaria Ceramics. Upon the scheme coming into effect, the existing Provident Fund, Gratuity Fund, Superannuation Fund and/or schemes and trusts, including employee's welfare trust, if any, created by KSPL for its employees shall be transferred to KCL. All suits, action, legal proceedings of whatsoever nature by or against KSPL pending and/or arising at the appointed date and relating to KSPL or its properties, assets, debts, liabilities, duties and obligations, shall be continued and/or enforced until the effective date as desired by KCL and as and from the effective date shall be continued and enforced by or against KCL in the same manner and to the same extent as would or might have been continued and enforced by or against KSPL. The deal is conditional upon approval by shareholders and or creditors of Kajaria Ceramics and Kajaria Securities, high court approval and approval of the Central Government or any other statutory or regulatory authority, if any. The deal was approved by the Board of Kajaria Ceramics on July 11, 2016. In order to approve the transaction meeting of creditors, unsecured creditors and shareholders of Kajaria Ceramics is scheduled on July 21, 2017. The deal got unanimous approval from creditors, unsecured creditors and shareholders of Kajaria Ceramics on July 21, 2017. As on February 6, 2018, Chandigarh Bench of National Company Law Tribunal approved the transaction.
Kajaria Ceramics Limited is an India-based manufacturer of ceramic/vitrified tiles. The Company's segments include Tiles and Others. The Tiles segment is engaged in the manufacturing and trading of ceramic and vitrified wall and floor tiles. The Others segment is engaged in the manufacturing of sanitary ware and faucet and trading of plywood and block board, and also includes bath ware and plywood products. Its product categories include glazed vitrified tiles - Eternity, ceramic wall and floor tiles, polished vitrified tiles and tile adhesives. The Company's wall tiles product categories include bathroom, kitchen, outdoor, living room, bedroom and wall tiles for commercial spaces. Its floor tiles product categories include living room, outdoor, bedroom, kitchen, bathroom and floor tiles for commercial spaces. The Company's Eternity glazed vitrified tiles include admiral brown, bolvia grey. ambrosia, ambrosia decor, apollo grey, astonia bronze, astonia nero and blossom beige decor.
KAJARIA CERAMICS LIMITED 
