Rane (Madras) Limited (NSEI:RML) agreed to acquire 49.97% stake in Rane Brake Lining Limited (BSE:532987) from Nisshinbo Holdings Inc. (TSE:3105) and others for INR 2.9 billion on February 9, 2024. Under the terms, Rane (Madras) Limited will issue 21 equity shares for 20 shares in Rane Brake Lining Limited. In a related transaction, Rane (Madras) Limited (NSEI:RML) agreed to acquire 41.68% stake in Rane Engine Valve Limited (BSE:532988) for approximately INR 980 million on February 9, 2024.

The transaction was approved by the Board of Directors of Rane (Madras) Limited and Rane Brake Lining Limited. A committee of Independent Directors has approved the transaction. Completion is subject to approval of shareholders, creditors, Stock Exchanges like BSE Limited and National Stock Exchange of India Limited, National Company Law Tribunal and such other approvals as may be required.

Implementation of the scheme is expected to take around 9 to 12 months subject to receipt of the requisite approvals. Axis Capital Limited acted as financial advisor, Transaction Square LLP acted as accountant and due diligence advisor, H&B Partners and J. Sagar Associates acted as legal advisors for Rane (Madras) Limited and Rane Brake Lining Limited. Motilal Oswal Financial Services Limited acted as fairness opinion advisor for Rane Brake Lining Limited while Axis Capital Limited acted as fairness opinion advisor for Rane (Madras) Limited.