RattanIndia Enterprises Limited (RETL) announced a further investment in its subsidiary, RattanIndia Power Limited (RPL), through a secondary purchase. RETL acquired an additional 0.19% equity stake, raising its total holding from 19.813% to 20.003%. This incremental acquisition results in RPL attaining the status of an ‘associate company’ under applicable accounting standards. The transaction, amounting to ₹8.32 crore, was executed on the NSE at prevailing market rates.
Strategic Investment in Power Subsidiary
RattanIndia Enterprises Limited (RETL) has successfully enhanced its equity shareholding in RattanIndia Power Limited (“RPL”), a listed entity where RETL functions as a promoter. Through a secondary purchase, the company increased its stake by 0.19%, moving its total holding from 19.813% to 20.003%.
This acquisition was formalized following transactions executed on the National Stock Exchange (NSE) at prevailing market prices, ensuring the deal was conducted on an arm’s length basis. The total cost associated with acquiring these additional shares amounted to Rs. 8,32,01,380/-.
Impact: Achievement of Associate Company Status
The primary impact of this transaction is that RattanIndia Power Limited has officially attained the status of an associate company for RattanIndia Enterprises, based on applicable accounting standards and provisions of the Companies Act, 2013. This classification reflects the sustained interest of the promoter group in RPL.
RattanIndia Power Limited Profile
RPL operates within the Thermal Power business. It was incorporated on October 08, 2007, and its presence is currently limited to India. The entity’s recent financial performance shows consistent revenue generation:
- FY 2022-2023 Turnover: Rs. 3,231.16 Crore
- FY 2023-2024 Turnover: Rs. 3,364.00 Crore
- FY 2024-2025 Turnover: Rs. 3,283.83 Crore
As of the date of this disclosure, the total paid-up Equity Share Capital of RPL is Rs. 5370,10,58,600/-, divided into 537,01,05,860 equity shares with a face value of Rs. 10/- each.
Source: BSE
