Surat Textile Mills Limited (BSE:530185) agreed to acquire Vareli Trading Co. Ltd on September 10, 2019. In consideration of merger, one fully paid equity share of INR 1 each of Surat Textile Mills Limited (BSE:530185) will be issued and allotted to the equity shareholders of Vareli Trading Co. Ltd for every 521 equity shares of INR 1 each held by them in Vareli Trading Co. Ltd. Vareli Trading Co. Ltd holds 7.75 million shares of Surat Textile Mills Limited which will be cancelled and amount to reduction of share capital of Surat Textile Mills Limited to that extent. Post transaction, the shareholding of Surat Textile Mills Limited will remain same to the pre transaction of 74.98%. As of March 31, 2019, the total revenue of Vareli Trading Co. Ltd is INR 0.053 million. The transaction is subject to approval of Surat Textile Mills Limited shareholders, Securities and Exchange Board of India, BSE Limited, National Company Law Tribunal (NCLT) and other regulatory authorities. Kunvarji Finstock Private Limited acted as fairness opinion provider to Surat Textile Mills Limited. As of September 7, 2022, National Company Law Tribunal, Ahmedabad Bench approved the transaction.

Surat Textile Mills Limited (BSE:530185) completed the acquisition of Vareli Trading Company Limited on September 26, 2022. Surat Textile Mills Limited issued 77.580026 million equity shares of INR 1 each to the shareholders of Vareli.