RMS Mosquto Private Limited made an offer to acquire 26% stake in A. F. Enterprises Limited for INR 10.4 million in cash on October 12, 2013. RMS Mosquto will offer INR 10 per share as consideration for 1.04 million shares. In a related deal, RMS Mosquto Private Limited entered into a share purchase agreement to acquire 19.83% stake in A. F. Enterprises Limited from Indodan Industries Limited. RMS Mosquto has adequate financial resources and has made firm financial arrangements for the implementation of the offer in full, out of its own sources/networth and no borrowings from any bank and/or financial institutions are envisaged. RMS Mosquto has deposited INR 2.6 million out of the total consideration in an escrow account with IndusInd Bank.

For the year ending March 31, 2013, A. F. Enterprises had EBITDA of INR 0.14 million, net income of INR 0.11 million, revenue of INR 1.09 million and net liabilities of INR 9.5 million. RMS Mosquto may reconstitute the Board of Directors of A. F. Enterprises and will not lay-off its employees for a period of two years upon completion of open offer. The offer is not conditional upon any minimum level of acceptance by the equity shareholders of A. F. Enterprises Limited. The offer opens on December 6, 2013 and closes on December 19, 2013. As on December 12, 2013, the Committee of Independent Directors of A. F. Enterprises recommended the shareholders to accept the offer. As on December 12, 2013, the offer opens on December 18, 2013 and closes on January 1, 2014. Heemadri Mukerjea and Amit Kumar of Sobhagya Capital Options Limited acted as financial advisor, Virender Rana of Skyline Financial Services Private Limited acted as registrar for RMS Mosquto Private Limited. Vinod Kumar Bansal of SMVA & Associates acted as the accountant for RMS Mosquto Private Limited. Gaurav Joshi of V. N. Purohit & Co acted as an accountant to A. F. Enterprises.

RMS Mosquto Private Limited cancelled the acquisition of 26% stake in A. F. Enterprises Limited on January 1, 2014.