Bajaj Electricals Acquires Starlite Lighting

Mumbai-based consumer electrical equipment manufacturing company Bajaj Electricals Ltd has bought the remaining stake in Starlite Lighting Ltd (SLL) for a cash consideration of about Rs 60 crore from its promoters.

May 03, 2021. By Manu Tayal

Mumbai-based consumer electrical equipment manufacturing company Bajaj Electricals Ltd has bought the remaining stake in Starlite Lighting Ltd (SLL) for a cash consideration of about Rs 60 crore from its promoters.

In this regard, the Bajaj Group company has executed a control transfer agreement with its outgoing promoters namely Ravindra Bharati and Arvind Bharati.

As part of the agreement, a cash consideration of Rs 15 crore will be paid by the company to relinquishment and transfer of the joint control and management rights in SLL.

The company in a statement said that, “in consideration of the said relinquishment and transfer of joint Control and Management Rights of SLL by Outgoing Promoters in favour of the company, the company will pay an aggregate control premium of Rs 14.80 crore, plus GST as applicable, to the Outgoing Promoters, subject to the terms and conditions of the said CTA.”

Additionally, it will also subscribe share worth Rs 45 crore from the promoters. It has also entered into a share subscription agreement for buying 45 lakh equity shares of SLL at a price of Rs 10 apiece.

“Further, SLL has now become a subsidiary of the company,” Bajaj Electricals said.

The company’s board has decided to commence an evaluation of a potential merger of SLL into the company.

SLL was a joint venture, engaged in the business of manufacturing different consumer electrical products, including lighting products like compact fluorescent lamps (CFLs) and light-emitting diode (LED) and consumer electrical appliances. It’s registered turnover was Rs 172.90 crore in FY 2019-20. 

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