The Board of Ramco Cements Ltd. has approved the sale of its entire equity stake in Lynk Logistics to Bundl Technologies Pvt. Ltd., who operate the food delivery platform Swiggy. In return, Ramco will subscribe to Compulsory Convertible Preference Shares of Swiggy.
Ramco Cements will sell 49.95 crore shares in Lynk Logistics to Bundl, as approved in its board meeting.
In exchange, Ramco will subscribe to 24.18 lakh Compulsory Convertible Preference Shares (CCPS) of Swiggy's parent company. CCPS are modes of raising funds for companies which are issued to investors and provide thm with fixed income. As the name suggests, these instruments have to compulsorily convert into equity shares after a predetermined period.
Post this, Ramco Cements will own an equity stake in the food delivery platform. The transaction is likely to be completed by August 14, 2023.
Under the deal, Ramco Cements will also be providing representations / warranties / indemnities of worth up to Rs 86.56 crore to Bundl Technologies.
Bundl Technologies is engaged in the online delivery of food and fast moving consumer goods. It also operates cloud kitchens for online delivery of prepared food.
Ramco Cements Ltd is a part of the diversified conglomerate Ramco Group.
In the March quarter, the company reported a 22.6 percent year-on-year growth in net profit to Rs 152 crore. Revenue increased by 50.3 percent year-on-year to Rs 2,568 crore during the period under review against Rs 1,710 crore a year ago.
Shares of Ramco Cements are trading 1.3 percent higher at Rs 937.15.u
