Stylam Industries Limited (SIL) incorporated in year 1991 is one of the largest manufactures of laminates sheets for both home and industry use. The company’s 70% revenue comes from export market. The current market cap is approx. Rs 580 crore and equity shares of the company are listed on BSE.
Golden Chem-Tech Limited (GCL) is an unlisted public company which manufactures chemicals & adhesives and has diversified for the manufacturing of the Acrylics Solid Surface in 2016. The manufacturing of the Acrylics Solid Surface will commence from 2018.
About the transaction:
- Amalgamation of GCL into SIL with an appointed date of closing of business hours on September 30, 2017.
- Purchase consideration is discharged by issuing 100 equity shares of Rs10 each of SIL for every 371 equity shares of Rs. 10 each of GCL. Total fair value of the GCL is Rs 22.84 crore.
- Both GCL and SIL are group companies.
- Rational of the scheme being GCL is recently diversified into manufacturing of Solid Acrylics Surface panel and is well recognised part of the building material industry and this product is complementary to the product and other building material i.e. laminates which is manufactured by SIL.
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