Rose Merc's Subsidiary Acquires 50% Stake in Refectio Private Limited for Rs. 50,000

Rose Merc Limited has announced a strategic move in the textile industry through its subsidiary, Moda Orama Ventures Private Limited. The company has acquired a 50% stake in Refectio Private Limited, a newly incorporated entity in the textile sector, for a cash consideration of Rs. 50,000.

Key Details of the Acquisition

Aspect	Details
Acquiring Entity	Moda Orama Ventures Private Limited (Subsidiary of Rose Merc Limited)
Target Company	Refectio Private Limited
Stake Acquired	50%
Consideration	Rs. 50,000 (Cash)
Industry	Textile

About Refectio Private Limited

Refectio Private Limited, the newly acquired company, is set to operate in the textile industry with a focus on:

Clothing and apparel manufacturing
Retail business across multiple brands
Consumer products

The company aims to establish itself in various aspects of the textile value chain, including design, manufacturing, and retail of clothing and wearing apparel.

Strategic Implications

This acquisition marks a significant step for Rose Merc Limited in expanding its presence in the textile industry. By gaining a 50% stake in Refectio Private Limited, Rose Merc's subsidiary has effectively made it an associate company of the Rose Merc group.

The move aligns with the growing trend of established companies in the textile sector diversifying their operations and strengthening their position in the market. It potentially allows Rose Merc to tap into new revenue streams and expand its product offerings in the competitive textile industry.

Financial Perspective

While the acquisition amount of Rs. 50,000 appears modest, it's important to note that Refectio Private Limited is a newly incorporated entity. The true value of this investment may lie in its future potential and strategic alignment with Rose Merc's long-term goals in the textile sector.

As per the latest available consolidated balance sheet data of Rose Merc Limited:

Financial Metric	FY 2025 (in Rs. crore)	YoY Change
Total Assets	87.00	264.02%
Shareholders' Capital	37.50	81.16%
Investments	14.60	111.59%

The significant growth in total assets and investments suggests that Rose Merc has been actively expanding its portfolio, of which this latest acquisition is a part.

Investors and market watchers will likely keep a close eye on how this strategic move unfolds and contributes to Rose Merc's overall growth strategy in the coming quarters.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+1.33%	+3.90%	+6.58%	+19.56%	-52.58%	+1,620.43%

Rose Merc Limited , a company listed on the Bombay Stock Exchange, has taken a step to enhance employee engagement and align interests with shareholders. The company's Compensation Committee has approved the allotment of 12,000 equity shares under its RML Employee Stock Option Plan II, 2023.

Key Details of the ESOP Allotment

Aspect	Details
Number of Shares Allotted	12,000
Face Value per Share	Rs. 10.00
Exercise Price per Share	Rs. 150.00
New Total Issued Share Capital	Rs. 5,94,28,240
New Total Issued Shares	59,42,824

This move represents a strategic decision by Rose Merc Limited to incentivize and retain key talent while potentially boosting productivity and loyalty among its workforce.

Impact on Share Capital

The allotment has resulted in an increase in the company's total issued and paid-up equity share capital. The new share count stands at 59,42,824 equity shares, each with a face value of Rs. 10.00. The newly allotted shares will rank pari-passu with the existing equity shares of the company.

Conclusion

Rose Merc Limited's implementation of the Employee Stock Option Plan II, 2023 demonstrates a strategic approach to human capital management. By offering equity participation to employees, the company aims to foster a sense of ownership and potentially drive improved performance. This allotment reflects the company's commitment to aligning employee interests with overall company performance and shareholder value.