Kachchh Minerals Expands into Real Estate with ₹206.75 Crore Acquisition of Rajhans Procon

Kachchh Minerals (KML), a company listed on the Bombay Stock Exchange, has announced a significant strategic move into the real estate sector . In a board meeting held on April 24, 2025, the company approved the acquisition of Rajhans Procon Private Limited (RPPL) in a share swap deal valued at ₹206.75 crore.

Acquisition Details

The board of KML has approved the acquisition of 30,000 equity shares, representing 100% of the equity shareholding of RPPL. The purchase consideration is set at ₹68,915.00 per equity share of RPPL, totaling ₹206.75 crore. This acquisition will be financed through a share swap, with KML issuing 7,38,37,500 new equity shares at ₹28.00 per share (including a premium of ₹18.00 per share) to RPPL's shareholders.

Strategic Expansion

This move marks a significant expansion for Kachchh Minerals, diversifying its business portfolio into the real estate sector. RPPL, incorporated on July 11, 2008, is primarily engaged in real estate development. The acquisition is expected to provide KML with a strong foothold in the property market.

Financial Implications

Corporate Actions

In addition to the acquisition, KML's board meeting resulted in several other significant decisions:

1. Increase in Authorized Share Capital: From ₹10.00 crore to ₹90.00 crore, subject to shareholder approval.
2. Alteration of Memorandum of Association: To align with the Companies Act, 2013 and expand the company's objectives.
3. Appointment of Company Secretary: Mr. Dipen Vijaykumar Shah appointed as Company Secretary and Compliance Officer.
4. Board Changes: Resignation of Mr. Jagdish Sajan Kandoria as Independent Director.

Shareholder Approval and Regulatory Compliance

The acquisition and related corporate actions are subject to shareholder approval at an upcoming Extraordinary General Meeting (EGM) scheduled for May 23, 2025. The company has emphasized that the transaction is being conducted at arm's length, based on a valuation report from a registered valuer.

Market Impact

This acquisition represents a major shift in Kachchh Minerals' business strategy, potentially transforming it from a minerals company to a diversified entity with significant real estate interests. The market's reaction to this strategic move will be closely watched in the coming days.

As Kachchh Minerals embarks on this new venture, stakeholders will be keen to see how the company leverages RPPL's expertise in the real estate sector and what synergies emerge from this acquisition.