Stalwart Advisors

Update on Merger Scheme

In a surprising development, NCLT has rejected the merger application of Orient Refractories with RHI India and RHI Clasil. This is a rare event, as approvals from all other stakeholders like creditors and shareholders were in order.

We have went through the NCLT Ruling and it seems the bench had some reservations on deal valuation; swap ratio and price calculation.

Based on our interaction with Orient’s Management over the years, and RHI’s stated strategy, we believe global parent entity has been very serious about consolidating their India operations and making this unit a key growth driver with significant focus on exports to leverage low cost advantage of India.

There could now be resubmission of the application with prescribed changes or a fresh application which could take a while.

We await clarity from management and will issue another note as soon as there is any material update.

Stock continues to be on Hold, fresh buying not recommended at current levels.

Link to Company Announcement: https://www.bseindia.com/xml-data/corpfiling/AttachLive/3981599b-4db1-44a8-8c65-0beffad5f7c2.pdf


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