Modulex Construction Technologies Ltd

Modulex Construction Technologies Ltd

Modulex is India's first and the world's largest steel modular manufacturing facility with an annual capacity of 200000 sq. m. Modulex Construction Technologies Ltd. was originally incorporated in the name Tumus Electric Corporation Limited on 24th May 1973. The Company changed its name to Modulex Construction Technologies Limited with effect from 14th December 2018. The Company is primarily engaged in production building supplying fabricating and manufacture of modular steel buildings. Consequent upon embarking to execute the business plan the Company's subsidiary Modulex Modular Buildings Private Limited (MMBPL) is continuing with construction of a factory facility to produce steel modules and the upcoming commercial operation date of the factory the Company has started the process of recruiting suitable personnel and leading HR firms both in India and overseas. The factory land owned by MMBPL 250 kms from Mumbai is being developed in a 40-acre site in MIDC Indapur Pune Dist. This manufacturing facility is India and world's modular buildings manufacturing cluster. The manufacturing facility in the initial phase will see 20 acres being developed consisting of three sheds totaling to circa 35000 square meters (circa 350000 square feet) which will produce steel modules and ancillary products such as bathroom pods doors and windows.The technology used by MMBPL i.e. the Group Company is franchised from Modulex Modular Buildings Plc. UK and enables to deliver design and manufacturing (through MMBPL) carbon neutral Smart BOPAS certified buildings on a fixed cost and time guarantee in nearly half the time and with high quality. The cost of the modular buildings is similar to traditional construction cost. MMBPL had secured investment from large industrial and real estate companies as strategic partners who will be adopting the Company's technology and absorbing a significant portion of the factory's output capacity thereby underpinning the investment made by Company in acquiring shares of MMBPL. The Company has a significant order pipeline from customers in India and in the UK for export order. The Company with unique offering of design and manufacturing of steel modular buildings and the construction thereof through its subsidiary MMBPL is perfectly positioned. The Company proposes to develop design templates for various sectors within real estate such as hotels hospitals schools hostels old age homes etc. to offer designing solutions for clients which result in a greater speed in delivery of the completed buildings.During FY 2015 the Company allotted shares on right basis to existing shareholders in the ratio of 9 Equity shares for every 10 held in Board Meeting dated 9th February 2015.On 15th July 2015 the Company received a show cause dated 13th May 2015 from Securities and Exchange Board of India on account of alleged delay/ non-filings under Regulation of 8(3) SAST Regulations 1997 for prior period of 1997 to 2011 when the Company was under the old promoters'/ management. Pursuant to approval of Shareholders obtained by way of Postal Ballot Notice dated 12th January 2016 the Company allotted 134500 Equity Shares of Rs. 10/- each at par on preferential basis to existing promoter of the Company Uttam Bharat Bagri on 14th March 2016.Pursuant to the approval of Shareholders obtained by way of Special Resolution in 43rd AGM of the Company held on 30th September 2016 the Company allotted 177500 Equity shares of Rs. 10/- each at par on preferential basis to existing promoter of the Company Uttam Bharat Bagri on 5th October 2016.Uttam Bagri the past promoter of the Company had entered into Share Purchase Agreement (SPA) on 27th September 2017 with Redribbon Modulex Buildings Limited (the Acquirer) and the Company pursuant to which Acquirer made an Open Offer under SEBI (SAST) 2011. Accordingly acquirer had cumulatively acquired 886890 (68.89%) Equity Shares through SPA and Open Offer. After completion of Open Offer in terms of SEBI (SAST) 2011 in February 2018 Acquirer acquired control of the Company and has been designated as the Promoter of the Company. During the year 2019 the Company acquired 78.59% of the subscribed Share Capital of the Modulex Modular Buildings Private Limited (MMBPL) by way of swap of shares on preferential basis pursuant to which MMBPL has become a Subsidiary of the Company. The Board of Directors of the Company vide its approval dated June 23 2018 and Shareholders of the Company vide its approval dated August 1 2018 had considered and approved the proposal of raising funds by issue of shares on preferential basis. Consequent to the Shareholder approval the Board of Directors allotted 41572186 Equity Shares of Face Value of Rs. 10/- each on 26th October 2018 against Equity Shares of Modulex Modular Buildings Private Limited on preferential basis by way of swap of Equity Shares. Shares. Since the said Shares were issued for consideration other than Cash the price at which the said Shares were to be allotted was determined on the basis of a valuation report of a registered valuer. Consequently Redribbon Modulex Buildings Limited Mr. Suchit Punnose (Whole Time Director) and Redribbon Advisory Services Private Limited are designated as New Promoters of the Company within the meaning of Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations 2018.