Banganga Paper Industries, a small-cap stock under ₹100, is in the spotlight after announcing a mandatory open offer to acquire 3,47,88,000 equity shares, representing 100% of the company’s existing public shareholding, at an offer price of ₹1.45 per share.
Open Offer Details
The open offer is being made for the acquisition of 3,47,88,000 fully paid-up equity shares, representing 100% of the existing public shareholding of the target company, at an offer price of ₹1.45 per share. The offer size has been fixed at 100% of the public float, and assuming full acceptance, the total consideration payable under the open offer would be ₹5.04 crore, to be paid entirely in cash.
Strategic Actions
The board of Banganga Paper Industries has approved a series of strategic and corporate actions linked to the proposed change in control, including an increase in authorised share capital to ₹36 crore from ₹12 crore, subject to shareholder approval, and the acquisition of 78.90% equity stake in CMJ Breweries Private Limited through a share swap arrangement.
- The board approved multiple preferential issuances, including up to 15,10,64,917 equity shares at ₹1.45 per share for consideration other than cash.
- 6,00,00,000 equity shares for cash at the same price.
- 2,20,00,000 convertible warrants.
In addition, the board approved a proposal to change the company’s name to Asgard Alcobev Limited, raise borrowing and investment limits to ₹500 crore, sell its 99.96% stake in Banganga Paper Mills Limited for ₹11.21 crore, and shift the registered office from Nashik, Maharashtra, to Shillong, Meghalaya.
Share Price Trend
The current market capitalisation of the company stands at ₹651.05 crore.
Remember, this is a perspective, not a prediction. Please consult with an investment advisor before making any investment decisions.