Hindware Home Innovation to acquire full stake in Hintastica for ₹2.79 crore
Hindware Home Innovation will invest up to ₹15 crore in Hintastica via rights issue and acquire Atlantic's stake for ₹2.79 crore. Hintastica will become a wholly-owned subsidiary. A corporate guarantee of ₹25 crore will also be extended.
The acquisition of a subsidiary and the associated investment and guarantee, while strategically positive, involve moderate financial commitments and contingent liabilities.
The acquisition and increased investment will lead to full ownership of Hintastica, providing strategic control and potential for business growth under the 'hindware' brand.
Hindware Home Innovation Limited has approved an investment of up to ₹15 crore in Hintastica Private Limited, a joint venture with Atlantic Société Française de Développement Thermique, France, through a rights issue.
Concurrently, the company has agreed to acquire Atlantic's entire 5,48,787 equity shares in Hintastica for approximately ₹2.79 crore. This acquisition will make Hintastica a wholly-owned subsidiary of Hindware Home Innovation Limited, leading to the termination of the existing joint venture agreement and other related arrangements with Atlantic.
The company intends to continue operating the water heater business under the "hindware" brand. Additionally, Hindware Home Innovation Limited has approved extending a corporate guarantee of ₹25 crore to Hintastica for its working capital facilities, covering the facilities in proportion to its 100% enhanced shareholding.
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Hindware Home Innovation Limited filed this with the NSE as a statutory disclosure, categorised under acquisition. It is a primary document, not a recommendation, and the desk marks it medium impact: worth reading, rarely worth acting on by itself.
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See the model portfoliosA plain-language summary of a public exchange filing by Hindware Home Innovation Limited. Read the original for the full detail.