Rajapalayam Mills to divest Stake in Lynks Logistics to Swiggy’s Parent Company
Rajapalayam Mills Limited, a prominent textile company, has announced its decision to divest a significant stake in Lynks Logistics Limited, a leading logistics firm. The deal, formalized through a Share Subscription and Purchase Agreement (SSPA) on July 12, 2023, involves the sale and transfer of 12,14,51,338 equity shares in Lynks. Bundl Technologies Private Limited, operating under the popular brand name “Swiggy,” will acquire these shares in exchange for Compulsorily Convertible Preference Shares of Bundl.
As part of the agreement, Rajapalayam Mills will provide representations, warranties, and indemnities to Bundl. The Company’s indemnification liability is capped at Rs. 21,04,74,068/-, as per the terms agreed upon in the SSPA. However, this amount is subject to potential adjustments on the Closing date, which may be influenced by Lynks’ Working Capital and Net Debt.
The stock of Rajapalayam Mills Limited was recently traded on the Bombay Stock Exchange (BSE) at Rs. 747.10, a rise from its previous closing price of Rs. 716.50. Throughout the day, a total of 3,217 shares were traded in 133 transactions.
About Rajapalayam Mills:
Rajapalayam Mills Limited, a publicly listed company, was established on February 24, 1936. It is registered as a public limited company and is situated in Rajapalayam, Tamil Nadu. The company’s authorized share capital amounts to Rs 15.00 crore, with a total paid-up capital of Rs 9.22 crore.
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