Jaykay Enterprises Limited’s Subsidiary Boosts Stake in Allen Reinforced Plastics Pvt Ltd

On June 2, 2024, Jaykay Enterprises Limited informed the stock exchange that through its wholly owned subsidiary, i.e., JK Defence & Aerospace Limited (JK Defence), has acquired additional equity shares in a step-down subsidiary, i.e. Allen Reinforced Plastics Private Limited (Allen).

JK Defence & Aerospace Limited has acquired an additional 1,94,03,363 equity shares, partly paid-up, in Allen Reinforced Plastics Private Limited, offered through Rights Issue. On Completion of full payment of the Rights Shares, JK Defence & Aerospace Limited’s shareholding in Allen Reinforced Plastics Private Limited will increase to 92.92% from 76.41%.

Allen Reinforced Plastics Private Limited belongs to the manufacturing and defence industry. The company reported a total turnover of ₹22.07 crore in FY 2024, ₹25.21 crore in FY 2023 and ₹28.99 crore in FY 2022.

On June 2, 2024, the acquisition of 1,94,03,363 partly paid-up equity shares of Allen at a price of ₹2.6 per share, including a premium of ₹1.6 per share was completed. The face value of the shares is ₹10. The consideration for this acquisition by JK Defence was paid in cash. The total cost of acquisition amounted to approximately ₹5.04 crore.

On May 29, 2024, JK Defence & Aerospace Limited took a loan of ₹5,10,00,000 from Jaykay Enterprises Limited, stating that JF Defence & Aerospace Limited will use this amount towards subscribing to the rights issue of equity shares being offered to it by its subsidiary, i.e., Allen Reinforced Plastics Private Limited. JF Defence & Aerospace Limited availed this loan at an interest rate of 10% per annum, and the loan is repayable, along with the accrued interest, as mutually decided between the parties. It is an unsecured loan availed by JF Defence & Aerospace Limited.

About Jaykay Enterprises Limited

Jaykay Enterprises Limited was previously involved in manufacturing nylon and acrylic fibres before expanding into Registrar and Share Transfer Agent services. In the defence and aerospace domains, the company focuses on engineering products, software designing and development, and manufacturing parts and accessories.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.