RRP Defense Ltd Approves Share Swap for Drone Subsidiary Acquisition
Filing Summary
RRP Defense Ltd has approved the acquisition of RRP Drones Innovation Private Limited through a share swap, issuing up to 1,27,45,935 equity shares at Rs. 178 each. This transaction will result in RRP Drones becoming a wholly-owned subsidiary. The acquisition is a related party transaction, with completion expected within 15 days post-approval. The Board also approved a merger proposal with RRP S4E Innovation Limited and the relocation of its corporate office. A Securities Issue Committee has been formed to oversee the share issuance process.
RRP Defense Ltd has announced the approval of a strategic acquisition of RRP Drones Innovation Private Limited through a share swap arrangement. The Board of Directors has sanctioned the issuance of up to 1,27,45,935 equity shares of RRP Defense Ltd at an issue price of Rs. 178 per share, which includes a premium of Rs. 168. This transaction is structured as a non-cash consideration, aligning with Chapter V of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018.
The financial terms of the acquisition involve the issuance of equity shares on a preferential basis to the shareholders of RRP Drones Innovation Private Limited. The total cost of acquisition is approximately Rs. 2,26,87,76,430. The acquisition will result in RRP Drones Innovation becoming a wholly-owned subsidiary of RRP Defense Ltd, with the company acquiring 100% of the paid-up equity share capital, amounting to 2,83,243 equity shares of the target company.
Operationally, RRP Drones Innovation Private Limited is engaged in the manufacturing, operation, repair, rental, and consultancy services for drones and related technologies. The acquisition aims to consolidate operations and enhance strategic value by integrating the target company’s operations with RRP Defense Ltd. The company is expected to benefit from synergistic advantages, including resource optimization and improved operational efficiency.
The timeline for the completion of this acquisition is contingent upon shareholder approval for the issuance of equity shares. The process is expected to conclude within 15 days following the necessary approvals from shareholders and relevant authorities, including the stock exchange.
The Board of Directors has also constituted a Securities Issue Committee to oversee the issuance and allotment of equity shares. The committee comprises Rajendra Chodankar, Piyush Garg, Venkateswara Mannava, and Riddhita Agrawal. This committee is tasked with liaising with stock exchanges and other authorities to ensure compliance with regulatory requirements.
In addition to the acquisition, the Board has noted a proposal for the merger and amalgamation of RRP S4E Innovation Limited with RRP Defense Ltd. A separate committee has been formed to evaluate the merger’s structure and related matters. Furthermore, the Board has approved the relocation of the corporate office to Navi Mumbai, where the company’s books of accounts are maintained.
RRP Defense Ltd is focused on expanding its capabilities in the defense sector through strategic acquisitions and mergers. The company’s priorities include enhancing its operational efficiency and consolidating its market position in the defense and drone technology sectors.