Mukta Arts Subsidiary Mukta A2 Cinemas Secures Up to ₹10 Cr Investment
Mukta Arts Ltd announced the execution of a Shareholders Agreement (SHA) and Securities Subscription Agreement (SSA) for its subsidiary, Mukta A2 Cinemas Private Limited. An investor, Mr. Rajiv Malhotra and Mr. Sunil Shamrao Patil, will invest up to ₹10 crores in Mukta A2. This investment will result in Mukta A2 ceasing to be a subsidiary and becoming an associate company, with Mukta Arts' shareholding diluted to approximately 42-49%. The company will not issue any shares, but Mukta A2 will issue equity shares and Compulsorily Convertible Debentures to the investor. The transaction is subject to certain conditions precedent, and Mukta Arts cannot transfer its shares in Mukta A2 without the investor's consent.
Key Highlights
- Mukta A2 Cinemas to receive up to ₹10 Cr investment.
- Mukta A2 will become an associate, not a subsidiary.
- Mukta Arts' stake in Mukta A2 will dilute to 42-49%.
- Investor to receive equity shares and CCDs from Mukta A2.
- No impact on management or control of Mukta Arts.
Price Impact
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