Transaction Details

Ram Ratna Wires Limited ("the Company") and Epack Durable Limited ("Epack") have a 50:50 joint venture company - Epavo Electricals Private Limited ("Epavo"), engaged in manufacturing Brushless Direct Current (BLDC) motors and air-movement solutions.

The Board of Directors of the Company, at their meeting held on October 29, 2026 (commencing at 02:30 p.m. and concluding at 04:04 p.m.), approved the acquisition of 2,21,26,000 equity shares of face value of ₹10 each of Epavo, representing 50% of its paid-up equity share capital, from Epack.

The Company executed the Share Purchase Agreement with Epack on October 29, 2026.

Financial Details

The acquisition price is ₹6.78 per equity share of face value of ₹10 each, fully paid up. The total consideration amounts to ₹15,00,14,280.00 (Rupees Fifteen Crores and Fourteen Thousand Two hundred and Eighty only), payable in cash.

Shareholding Impact

Pre-acquisition shareholding: Company held 50% of Epavo

Post-acquisition shareholding: Company will hold 100% of Epavo

Epavo will become a Wholly Owned Subsidiary (not material) of the Company effective from the closing date mentioned in the Agreements.

Target Company Information

Epavo Electricals Private Limited:

  • Incorporated: August 26, 2020 under Companies Act, 2013
  • Industry: Electrical
  • Business: Manufacturing Brushless Direct Current (BLDC) motors and air-movement solutions
  • Geographic presence: India

Financial Performance (Turnover in ₹ Lakhs)

  • FY 2025-2026: 2,540.35
  • FY 2024-2025: 4,294.55
  • FY 2023-2024: 2,663.66

Transaction Rationale

The Company and Epack mutually agreed to terminate the joint venture arrangement. Epavo was set up in 2020 as a joint venture to manufacture and market BLDC motors and related products, building on the Company's manufacturing capabilities in winding wires. Since inception, the Company has been responsible for day-to-day management and operations of Epavo. BLDC motors are a downstream application of winding wires, the Company's core product. The Board believes that holding 100% of Epavo will support the Company's strategy of participating more in the electric motor value chain.

Regulatory Aspects

  • Not a related party transaction (Epack is unrelated to the Company or its promoter/promoter group)
  • One of the Company's Directors is also a director in Epavo to represent the Company's interest
  • Transaction is being undertaken on an arm's length basis
  • No governmental or regulatory approvals required

Timeline

The Company expects to complete the acquisition by November 30, 2026.

Board Statement

The Board believes that the Acquisition is in the interest of the Company and its shareholders. Statements about the Company's expectations and strategy are forward-looking and subject to risks and uncertainties.

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