Vijay Kedia's & Ashish Kacholia Stock To Acquire Mindful Souls BV Worth Euro 12 million Acquisition

A mid-cap firm operating in the consumer discretionary industry is Vaibhav Global. Mr. Sunil Agrawal founded Vaibhav Global Limited (VGL) in 1989. VGL, which has its headquarters in Jaipur, Rajasthan, India, was first established as "Vaibhav Gems Limited" in 1989. The company went public in 1996-1997 and is traded on the Indian exchanges BSE and NSE. The company manufactures stylish jewellery and accessories. In order to buy the whole share capital of Mindful Souls BV, a Dutch company with limited liability, for a price of 12 million euros, the company has signed a share purchase agreement with the target company's promoters and shareholders on 26 September 2023.

"The proposed acquisition will create synergies through our deep sourcing and manufacturing abilities. Mindful Souls' native digital abilities will allow us to strengthen our digital businesses," said Vaibhav Global in a stock exchange filing.

The completion of the acquisition is set to come to an end within 2 weeks from the date of the agreement. The price to purchase 100% of the ordinary shares and 100% of the shareholding/control of the target company is €12 million. Mindful Souls BV will eventually become a fully owned subsidiary of the acquirer post the deal.

Mr. Sunil Agarwal, Managing Director, Vaibhav Global Limited said, "The proposed acquisition will create synergies through our deep sourcing and manufacturing abilities. Mindful Souls' native digital abilities will allow us to strengthen our digital businesses."

Vaibhav Global also said in a stock exchange filing on Wednesday that, "Pursuant to regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we would like to inform you that the Company has received the assessment and demand orders for Assessment Year 2020-21 under the provisions of Sections 144(C) and 156 of the Income-tax Act, 1961, resulting into demand of Rs. 91.81 crores (including interest)."

"While the Management is in the process of detailed examination of the Assessment Order received, on a broad review of the said Order, the major contributor to the demands raised in the said Order are transfer pricing and applicability of section 115QA on Buy-back of shares," the company further informed stock exchanges.

On Thursday, the shares of Vaibhav Global opened on the BSE at Rs 439.65 apiece and were trading 0.71% lower at Rs 435.85 while writing this copy. The scrip recorded a 52-week-high of Rs 469.00 on (29/08/2023) and a 52-week-low of Rs 268.60 on (29/03/2023). During Q1FY24, ace investor Vijay Kedia held 32,25,000 shares of Vaibhav Global in his portfolio which is 1.95% of the total fully paid-up equity capital of the company whereas another renowned investor Ashish Kacholia held 20,00,000 shares or 1.21% stake in the company as per the data available on BSE.