Discussion on RRP S4E innovation Unlisted Shares Price:

The company is sending emails to investors for following Actions:

For every 10 shares of unlisted RRP S4E Innovation Ltd, a shareholder will receive 14 shares of listed RRP Defense Ltd…

RRP S4E Innovation’s promoter also owns another company named RRP Semiconductor. Recently, RRP Semiconductor acquired a listed entity called Euro Asia Exports. Going forward, both RRP S4E Innovation and RRP Drone are expected to be merged into this listed company.

https://x.com/UnlistedZone/status/1795323398727381020

RRP S4E Innovation - Acquisition of a Drone Company by SWAP Ratio having Same Promoter ! Let us understand this in Q&A Format! 

Q1: What is the acquisition about? 

A1: RRP S4E Innovation Private Limited is acquiring 100% stake in RRP Drones Innovation Private Limited​​. 

Q2: What is the valuation of the acquisition? 

A2: The valuation of RRP Drones Innovation Private Limited is Rs. 175 crore. This valuation is based on 2,00,000 equity shares of face value Rs. 10 each, valued at Rs. 8750 per share​​. There is no information available regarding the Revenue and PAT of this company. 

Q3: What is the swap ratio? 

A3: The swap ratio for the acquisition is 35:1. For every share of RRP Drones Innovation Private Limited, 35 shares of RRP S4E Innovation Private Limited will be issued​​. The Valuation of RRP S4E Innovation is INR 250 per share and RRP Drone Innovation is INR 8750 per share. 

Q4: What will be the total shares outstanding after the acquisition? 

A4: Pre-acquisition, RRP S4E Innovation Private Limited has 65,76,436 equity shares. Post-acquisition, an additional 70,00,000 equity shares will be issued, resulting in a total of 1,35,76,436 shares outstanding​​.

 Q5: Who are the proposed allottees and their shareholding in RRP Drones Innovation Private Limited? 

A5:
(i) Rajendra Kamalakant Chodankar: 1,60,000 shares (80%) 
(ii) Anay Rajendra Chodankar: 20,000 shares (10%) 
(iii) Sachin Shetty: 20,000 shares (10%)​​.

 Q6: What is the pricing of the equity shares of RRP S4E Innovation to be issued? 

A6: The equity shares will be issued at a price of Rs. 250 per share, including a premium of Rs. 240 per share​​. 

Q7: What are the benefits of this acquisition? 

A7: 
(i) Expansion and development of business operations. Improvement in debt-equity ratio. 
(ii) Consolidation of accounts leading to increased wealth for shareholders. 
(iii) Enhanced business activity focus by promoters and directors. 
(iv) Strengthening of the company's net worth​​. 

Q8: Will there be any change in control of the company post-acquisition? 

A8: No, the issue of equity shares will not result in a change in the management or control of the company​​. 

Q9: What is the business of RRP Drones Innovation Private Limited? 

A9: RRP Drones Innovation Private Limited is engaged in: 

(i) Manufacture, operation, repair, and renting services of various types of drones. 

(ii) Providing drone services domestically and globally. Capturing, processing, and analyzing data collected using drones.

(iii) Developing flight controllers, remote controllers, and related technology. 

(iv) Offering drone manufacturing and service solutions. Providing critical border protection systems and in-house design, electronics, and related services​​.

The company has recently raised INR 27 Cr from different investors at INR 250 per shares by issuing ~10.7350 Lac shares. As on 31.03.2023, the total shares outstanding were ~62 Lac. So, total outstanding shares after this issue would be ~72 Lac. So, Mcap at INR 300 would be INR 216 Cr. 

To Learn About Company Product: