Intermetal Engineers Acquires 100% Stake in Ashwath Technologies
On March 4, 2024, Intermetal Engineers (India) Private Limited (“Intermetal”), a wholly-owned subsidiary of RHI Magnesita India Limited, took a significant step towards expanding its business by signing a Share Purchase Agreement (SPA) with Ashwath Technologies Private Limited (“Ashwath”) and its existing shareholders. This agreement marks a strategic acquisition that will enable Intermetal to take full ownership of Ashwath. The information regarding this transaction was officially received by RHI Magnesita India Limited on March 4, 2025, at 4:00 PM.
Key Highlights of the Acquisition
Parties Involved
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Intermetal Engineers (India) Private Limited – A wholly-owned subsidiary of RHI Magnesita India Limited.
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Ashwath Technologies Private Limited – The company being acquired.
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Existing Shareholders of Ashwath – The sellers in the agreement.
Purpose of the Acquisition
Intermetal aims to strengthen its market position by acquiring 100% of Ashwath’s subscribed and paid-up share capital. This includes 10,000 equity shares, each with a face value of INR 10.
Shareholding Details
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Before the acquisition, Intermetal held no shares in Ashwath.
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Post-acquisition, Intermetal will own 100% of Ashwath’s shareholding.
Transaction Terms
Intermetal will acquire 10,000 equity shares of Ashwath for a total consideration of INR 14,00,00,000. The agreement also grants special rights to Intermetal, including:
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The right to appoint directors.
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First right to share subscription in case of any new issuance of shares.
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The right to restrict changes in Ashwath’s capital structure.
Future Considerations
In the event of termination or amendments to this agreement, RHI Magnesita India Limited will be required to provide additional disclosures to the relevant stock exchanges.