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Macrotech Developers informs about clarification in regards to proposed mergers

27 Jan 2022 Evaluate

With reference to its release dated January 25, 2022 in relation to proposed merger of National Standard (India) (NSIL), Roselabs Finance (RFL) and Sanathnagar Enterprises (SEL) into the company. Macrotech Developers has informed that: MDL is holing 73.94%, 74.25% and 72.70% of these 3 listed entities respectively, As a part of its focus on ESG, MDL has been working on simplifying its corporate structure in order to improve transparency for all its stakeholders. Towards this end, MDL has proposed merger of 9 unlisted wholly owned subsidiaries in Dec 2021 and has now proposed merger of 3 listed subsidiaries, It is important to note that these 3 listed subsidiaries do not have material business or future business plan. Two of the three subsidiaries, National Standard (India) and Sanathnagar Enterprises had development projects in the past which have now been completed and they only hold some inventory or investments, The market capitalization of National Standard (India) (NSIL) was ~Rs 100 crores prior to Covid. It has run up to ~Rs 20,000 crores now with infrequent trading. The book value of NSIL is ~ Rs 225 crores, The merger ratios have been decided as per the Valuation Report provided by Bansi Mehta & Company and Fairness Opinion provided by Kotak Mahindra Capital Company. The total new equity proposed to be issued by MDL will be ~0.1% of its overall equity base. Hence, these mergers have no material impact on MDL’s shareholders and as part of the process, the mergers will proceed only after approval of the majority of the minority shareholders of these 3 companies which are proposed to be merged.

The above information is a part of company’s filings submitted to BSE.

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