Metropolis Healthcare Limited’s wholly owned subsidiary, Metropolis Quality Solutions Private Limited (MQSPL), has received board approval for the issuance of Optionally Convertible Redeemable Preference Shares (OCRPS). This issuance, valued at INR 1,00,000, will lead to the conversion of these shares into equity. Upon successful subscription and conversion, MQSPL will cease to be a wholly owned subsidiary, though it will remain a subsidiary of Metropolis Healthcare.
Metropolis Healthcare Subsidiary Approves Convertible Share Issuance
Metropolis Healthcare Limited announced that its wholly owned subsidiary, Metropolis Quality Solutions Private Limited (MQSPL), has received approval from its Board of Directors to proceed with the offer and issuance of Optionally Convertible Redeemable Preference Shares (OCRPS). This strategic move is set to alter the ownership structure of the subsidiary.
Details of the Issuance and Conversion
The issuance involves 10,000 OCRPS, each with a face value of INR 10, aggregating to a total value of INR 1,00,000. These preference shares are convertible into equity shares at a ratio of 1:1. The conversion process is contingent upon the fulfillment of terms and conditions associated with the issuance and is expected to be executed in tranches over a period of up to 6 years.
Impact on Subsidiary Ownership
Following the successful subscription and subsequent conversion of the OCRPS into equity shares, MQSPL will no longer be a wholly owned subsidiary of Metropolis Healthcare Limited. However, it will continue to operate as a subsidiary of the parent company. The transaction has been reviewed and does not qualify as a related party transaction.
Allottee Information
The proposed allottee for these OCRPS is Dr. Puneet Kumar Nigam, the former Chief Quality Officer of Metropolis Healthcare Limited. Importantly, Dr. Nigam is not associated with the Promoter or Promoter Group of the Company.
Compliance and Regulatory Status
The details required under the SEBI Listing Regulations have been provided, and the company has confirmed that the provisions of Regulation 37A of the SEBI Listing Regulations are not applicable for this proposed issuance. The transaction is also outside the scope of any Scheme of Arrangement.
Source: BSE
