RHI Magnesita Fuels Growth of Intermetal with ₹2.5 Cr Boost Ahead of Strategic Tech Acquisition

In a strategic move to bolster its industrial capabilities, RHI Magnesita India Limited has approved a ₹2.5 crore rights issue investment in its wholly owned subsidiary, Intermetal Engineers (India) Private Limited. With a robust turnover of ₹611.76 lakhs for FY25, Intermetal specializes in manufacturing and selling slide gate mechanics and related components.

 

The rights issue involves the subscription of 150 equity shares at ₹1,66,475 per share, including a premium of ₹1,66,375 per share. The entire investment will be executed via cash consideration. Importantly, this transaction is classified as a related party transaction but is executed at arm’s length to conform with regulatory standards. The company has confirmed that there will be no change in control; Intermetal will continue as a fully owned subsidiary of RHI Magnesita India Limited.

 

Proceeds from the issue will not only support Intermetal’s general corporate purposes but also partially finance its proposed acquisition of Ashwath Technologies Private Limited, subject to the finalization of definitive agreements. This aligns with the company’s broader objective of strengthening its market position and accelerating growth via subsidiary-led expansion.

 

Key Highlights

Source: Alpha Tribe, SEBI filings, MoneyControl, CitrusInteractive, Business Standard.