The small-cap stock with a market capitalization of Rs 1,517 crore which is a manufacturer of architectural accessories gained 23.2 percent in the last 5 trading sessions.
On Tuesday, Hardwyn India Ltd’s shares were locked at a 5 percent upper circuit of Rs 43.50 a share. The stock price increased after the company’s board of directors approved the merger of Fiba Hardwyn Locks Ltd and Hardwyn India Ltd.
As per exchange filings, the Hardwyn India Board of Directors approved the Draft Scheme of Amalgamation with Fiba Hardwyn Locks Limited.
The cash consideration will be given to the eligible shareholders of the transferor (Fiba Hardwyn Locks Limited) company, or the transferee (Hardwyn India Limited ) company will issue up to 26,48,00,880 equity shares to the transferor company’s eligible shareholders.
Fiba Hardwyn Locks Ltd net worth stands at Rs 6.86 crore as on March 2023. Its annual turnover is Rs 39.59 crore. It’s paid-up share capital value stands at Rs 6.58 crore. Hardwyn India Ltd paid up capital stands at Rs 34.88 crore, and its net worth is Rs 372.5, with an annual turnover of Rs 125.06 crore.
The proposed merger will strengthen generic products and enable synergistic benefits, and economies of scale, enhancing the ability to deal with regulatory challenges, long-term growth, increasing profitability, higher market share, and reorganisation.
Hardwyn India Ltd is an architectural hardware and glass fittings company that offers comprehensive solutions for residential and commercial constructions.
Fiba Hardwyn Locks Ltd is a manufacturer of fabricators, cutters, moulders, and other hardware-related enterprises.
The company’s interest income increased by 49% year on year, from Rs 84 crore in FY 21-22 to Rs 125 crore in FY 22-23. Within the time frame provided, net profit increased by 200%, from Rs 3 crore to Rs 9 crore.
Hardwyn India’s post-merger shareholding will be 68.03 percent promoters and 31.97 percent regular investors.
Written by Omkar Chitnis
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