RHI Magnesita India Limited has announced that its board, along with the boards of its subsidiaries, has approved a scheme of merger. The scheme involves the amalgamation of Intermetal Engineers (India) Private Limited, a wholly owned subsidiary, with and into Ashwath Technologies Private Limited, which is a wholly owned subsidiary of Intermetal. The appointed date for the merger is April 1, 2026.

The transaction is structured under Section 233 of the Companies Act, 2013. As both entities are wholly owned subsidiaries, the scheme is exempt from related party transaction regulations under SEBI Listing Obligations. The merger is expected to simplify the corporate structure by eliminating the holding company layer, resulting in a single consolidated entity.

Financial and Operational Details

The merger aims to streamline management and reduce administrative, legal, and compliance costs. It will also consolidate assets, liabilities, and business operations to strengthen the financial position of the transferee company. The turnover figures for the entities involved for the year ended 2026 are detailed below.

Shareholding and Rationale

Intermetal Engineers primarily manufactures, sells, and deals in machinery and equipment for steel plants. Upon the scheme becoming effective, 10,000 equity shares of Ashwath Technologies, with a face value of Rs. 10 each, will be issued to RHI Magnesita India Limited and its nominee. There will be no cash consideration for this issuance.

Consequently, the shareholding of RHI Magnesita India Limited in Intermetal Engineers will stand cancelled. Ashwath Technologies will become a 100% wholly owned subsidiary of RHI Magnesita India Limited. The management believes this consolidation will lead to greater operational efficiencies and optimal resource utilization.

RHI Magnesita India Refractories Limited (RHIMIRL), a wholly owned subsidiary of rhi magnesita , has approved the sale of assets related to its manufacturing facility in Bhilai, Chhattisgarh. The Board of Directors of RHIMIRL granted the approval on May 20, 2026, to sell the industrial land of the plant along with the fixed plant and machinery included therein.

Closure of Operations

The sale of these assets follows the company's previous decision to discontinue operations at the Bhilai plant. The manufacturing facility was officially closed effective May 31, 2024. The recent board approval marks the next step in the process of divesting the physical assets associated with the discontinued site.

Transaction Details

The disclosure regarding the asset sale was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The communication confirms that the sale encompasses both the land and the fixed machinery that formed an integral part of the industrial operations at the location.

The company has stated that this information is being provided for the necessary records and compliance purposes.