Nature of the Event
The disclosure is a regulatory intimation of an acquisition of a controlling stake in another company, making it a subsidiary.
Key Quantitative Figures
- Number of shares acquired: 2,03,258 equity shares
- Face value per share: ₹10
- Acquisition price per share: ₹10
- Total cash consideration: ₹20,32,580 (2,03,258 shares × ₹10)
- Percentage of shareholding acquired: 59.78%
- Target's authorized capital: ₹1,00,000
Parties Involved
- Acquiring Entity: Mish Designs Limited
- Target Entity: I'DESIGN Fashions Private Limited
- Designated official: Namrata Teli, Company Secretary & Compliance Officer
Purpose or Rationale
The acquisition was undertaken to expand business operations on a large scale, drive growth, increase revenue, and enhance market share. It aligns with the main line of business of the listed entity.
Related Party Transaction & Approvals
The acquisition constitutes a related party transaction as I'DESIGN Fashions will become a subsidiary of Mish Designs Limited. The company has stated that necessary approval from its Audit Committee was obtained and that the transaction was executed at "arm's length." No governmental or regulatory approvals were required for this acquisition.
Financial and Operational Impact of the Target
I'DESIGN Fashions Private Limited is involved in the manufacture and retail of wearing apparel (except fur apparel). The company was incorporated in 2021 and has not generated any turnover since its inception.
Capital Structure Impact
The acquisition results in Mish Designs Limited holding a 59.78% controlling stake in I'DESIGN Fashions Private Limited.
Next Steps
The acquisition will be formally taken on record in the upcoming Board Meeting of Mish Designs Limited.