Pidilite Industries Ltd, has plans to start a new business which involves lending money. This new business will provide small loans to people or companies within its network to help them grow.
To make this new business happen, the company has found another company called Pargro Investments Private Limited, which is part of the same group as Pidilite Industries. Currently, Pargro doesn’t lend money to anyone, and it doesn’t owe any debts as of October 31, 2023.
Pidilite Industries plans to acquire Pargro by creating a new company, fully owned by itself, through a Share Purchase Agreement (SPA). This agreement should be in place by March 31, 2024. They will buy Pargro at a price of up to 10 crores Rupees, which is the same as the value of the investments Pargro holds on its books as of October 31, 2023. This value has been determined by an independent expert. The acquisition will be finalized after the SPA is signed and they get the necessary approvals from the Reserve Bank of India (RBI).
Over the next two years, to make this new lending business work, Pidilite Industries plans to invest up to 100 crores Rupees, using a combination of their own money (equity) and borrowed money (debt).
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