Rane (Madras) gains 3% on receiving NCLT's nod for scheme of amalgamation

Rane (Madras) shares advanced 3 per cent in trade on March 26, 2025, on BSE. The uptick in the stock came after the National Company Law Tribunal (NCLT) approved the merger of Rane Engine Valve Limited and Rane Brake Lining Limited with and into Rane (Madras) Limited.

 

Around 11:54 AM, Rane (Madras) share price was up 1 per cent at ₹665 per share on BSE. In comparison, the BSE Sensex was down 0.34 per cent at 77,752.63. The market capitalisation of the company stood at ₹1,081.64 crore. The 52-week high of the stock was at ₹1,525.75 per share and the 52-week low was at ₹577.95 per share.

 

 

"This is in further to our earlier intimations relating to the Scheme of Amalgamation between Rane Engine Valve Limited ("REVL" / "Transferor Company 1") and Rane Brake Lining Limited ("RBL" / "Transferor Company 2") with and into Rane (Madras) Limited ("RML" / "Transferee Company") and their respective shareholders subject to regulatory approvals. We hereby inform that the Hon'ble National Company Law Tribunal ('NCLT'), Chennai Bench have vide their order dated March 24, 2025," the filing read. 

 

The company has also received a show cause notice from Income Tax Department in connection with the ongoing assessment for the Financial Year 2021-22 (Assessment Year 2022-23). The notice has sought details regarding the payment of remuneration to the Chairman, capital expenditure towards research and development claimed as deduction, foreign travel expenses, profit on sale of assets. 

 

The tax impact on the issues raised in the notice is ₹2.02 crore. However, the company is confident of furnishing all relevant information in reply to the show cause notice.

 

Rane (Madras) is in the process of preparing the reply along with the necessary details, according to the filing. 

 

Rane Madras, a part of the Rane Group, is a prominent Indian manufacturer specialising in automotive components, particularly steering and suspension parts. The company provides a wide range of products, including power steering systems, steering gears, suspension components like ball joints and tie rods, and other essential automotive parts. 

 

With state-of-the-art manufacturing facilities, Rane Madras adheres to global quality standards and continuously innovates in its production processes. It has a significant presence in both domestic and international markets, supplying components to leading automobile manufacturers. Rane Madras is recognized for its high-quality products and strong partnerships with OEMs (Original Equipment Manufacturers) and Tier 1 suppliers.

 

In the past one year, Rane Madras shares have lost 3.8 per cent against Sensex's rise of 7.6 per cent.