Rane Group, a leading auto component manufacturer, on Friday, announced the merger of Rane Diecast Limited (RDL) with Rane (Madras) Limited (RML) effective April 1, 2013.
The exchange ratio will be one share of RML for every 30 shares of RDL. The merger is subject to regulatory, legal and other statutory approvals as may be required.
RDL, based in Hyderabad, manufactures precision high pressure aluminium die castings mainly for export. The company reported sales of Rs. 65 crore for the year ended March 31, 2013. It has 118 employees.
RML, a leader in steering and suspension products, reported sales of Rs. 640 crore for the year ended March 31, 2013. The merger with RML will help RDL’s business grow at a faster rate leveraging the customer base of RML besides benefiting from other synergies in combining the operations of the two companies, says a company release.
