The merger of Rane Diecast and Rane Madras to help Rane Diecast expand business, says the group
Chennai: Auto component manufacturer Rane Group announced Friday the merger of subsidiaries Rane Diecast Ltd and Rane (Madras) Ltd, with effect from 1 April.
The company said the merger will help Rane Diecast expand business faster as it can leverage the customer base of Rane Madras.
Rane Madras makes steering and suspension products while Rane Diecast makes high-pressure aluminium die castings for auto companies, mainly for export.
The exchange ratio will be one share of Rane Madras for every 30 of Rane Diecast. The merger is subject to approvals.
Hyderabad-based Rane Diecast saw sales of Rs.65 crore in the just-concluded fiscal year and has an employee strength of 118. Rane Madras had sales of Rs.640 crore last fiscal. The merger was approved by the boards of both companies.
Rane Group, which has seven subsidiaries, posted revenue of Rs.2,923 crore last year.