Deutsche Bank is buying 20% stake in Rama Cylinders, a Mumbai-based high-pressure cylinder manufacturer, for Rs 84 crore, a person directly involved in the transaction told ET. The deal values Vashu Ramsinghani-promoted Rama Cylinders at Rs 420 crore.
“The transaction involves issue of around 60 lakh equity shares and warrants to Deutsche Bank by the Indian company,” the person said. The proposed investment is set to take place in two tranches through fresh issue of equity by the Indian company.
First, Deutsche Bank would buy around 45 lakh shares in Rama Cylinders. Then, the remaining stake would be bought over after conversion of around 15 lakh warrants into equity shares.
Rama Cylinders, incorporated in 2004, is in the business of manufacturing high-pressure seamless cylinders, seamless pressure vessels and seamless accumulator shells. The company also manufactures cylinders used for medical gases, beverages, scuba diving, accumulators and cascades.
The company’s manufacturing plant has an installed capacity of 300,000 units of high-pressure seamless steel cylinders and allied products such as vessels and accumulators.
Source: Economic Times