Rose Merc Limited Signs Non-Binding LOI to Acquire 30% Stake in Virtual Gain Technologies for INR 15 Crores

Rose Merc Limited , a company listed on the Bombay Stock Exchange (BSE: 512115), has announced its intention to acquire a 30% equity stake in Virtual Gain Technologies Private Limited (VGTPL) for INR 15 crores. The company executed a non-binding Letter of Intent (LOI) on December 08, 2025, marking a significant step towards expanding its presence in the e-commerce and digital technology sectors.

Key Highlights of the Acquisition

Acquisition Target: Virtual Gain Technologies Private Limited
Stake to be Acquired: 30% of the issued and paid-up share capital
Acquisition Cost: INR 15.00 crores (approximately $2.00 million USD)
Nature of Agreement: Non-binding Letter of Intent

Strategic Rationale

Rose Merc Limited aims to leverage VGTPL's expertise in:

IT services
Web development capabilities
E-commerce solutions

This acquisition is expected to strengthen Rose Merc's position in the rapidly growing digital technology space.

About Virtual Gain Technologies

Virtual Gain Technologies is known for its suite of digital platforms, including:

Fynzon
Markzon
Payzon
FynzonPay

These platforms cater to various aspects of e-commerce and digital transactions, potentially offering Rose Merc a diverse portfolio of digital solutions.

Financial Implications

While the acquisition is still in its preliminary stages, it's worth noting Rose Merc's recent financial position based on their latest balance sheet data:

Financial Metric	FY 2025 (in INR crores)	YoY Change
Total Assets	59.20	+211.58%
Current Assets	10.60	+39.47%
Investments	46.90	+350.96%
Total Equity	32.10	+69.84%

The significant increase in investments and total assets over the past year suggests that Rose Merc has been actively pursuing growth opportunities, of which this potential acquisition is likely a part.

Next Steps

The completion of this transaction is subject to several conditions, including:

Satisfactory due diligence
Necessary internal and regulatory approvals
Execution of a mutually acceptable Share Purchase Agreement

Investors and stakeholders should note that as the LOI is non-binding, except for provisions relating to confidentiality, governing law, and costs, the final terms of the deal may be subject to change.

Rose Merc Limited's move to acquire a stake in Virtual Gain Technologies aligns with the growing trend of traditional companies investing in digital capabilities to stay competitive in an increasingly tech-driven market landscape. The success of this acquisition could potentially position Rose Merc as a more significant player in the e-commerce and digital services sector.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-4.45%	-0.87%	+0.22%	+25.53%	-38.77%	+1,581.45%

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.