Shares of Shanti Educational Initiatives Ltd, a small-cap company with a market capitalisation of Rs 3,203.10 crore, will be in focus when markets open on Wednesday. The company announced a major merger in its latest exchange filing after market hours on Monday. In its filing, the company said that the boards of GREW Energy Private Limited and Shanti Educational Initiatives Limited have approved a proposed scheme of arrangement.
Under the first phase, Shanti Educational will transfer its business to Shanti Learning Initiatives Private Limited (SLIPL) through a slump sale. In exchange, SLIPL will issue its shares to Shanti Educational.
In the second phase, Shanti Educational will be merged with GREW Energy. In return, GREW Energy will issue its shares to the shareholders of Shanti Educational in a fixed ratio.
Share Exchange Ratio Details
As per the agreed share exchange ratio, shareholders of Shanti Educational will receive 100 shares of GREW Energy for every 212 shares they hold.
According to the filing, GREW Energy is one of the country’s fastest-growing solar PV manufacturers. The company is currently working on large solar manufacturing projects in Rajasthan and Madhya Pradesh.
Shanti Educational Initiatives provides services to schools and educational institutions, catering to students from pre-school to post-graduate levels.
Share price
On Monday, shares of Shanti Educational Initiatives Ltd closed at Rs 198.95 on the BSE, up 0.05 per cent or Rs 0.10. The stock’s 14-day relative strength index (RSI) is 70.66. For the uninitiated, a level above 70 is considered overbought or overvalued, and below 30 is defined as oversold or undervalued. The stock ended the session in the green, even as benchmark equity indices Sensex and Nifty crashed on Monday, tracking a sharp spike in crude oil prices amid escalating tensions in the Middle East.
The 30-share BSE Sensex tanked 1048.34 points or 1.29 per cent to settle at 80,238.85. During the day, it dropped 78,543.73. The 50-share NSE Nifty tumbled 312.95 points or 1.24 per cent to end at 24,865.70.
