Prism Johnson Ltd Acquires ₹20.41 Crore Worth of Shares from RQBE

Prism Johnson Ltd announced in a stock exchange filing its acquisition of 1,36,07,482 equity shares of ₹10 each, priced at a premium of ₹5 per share, amounting to ₹20,41,12,230 from Raheja QBE General Insurance Company Limited (RQBE), a subsidiary. The transaction, completed on July 2, 2024, was conducted on a rights basis, maintaining Prism Johnson’s existing shareholding percentage in RQBE.

RQBE operates within the general insurance sector and was established on August 14, 2007, focusing on providing comprehensive insurance services, including liability, health, property, and motor insurance, to customers across India. RQBE reported a turnover of ₹316 crore in FY 2024, ₹396 crore in FY 2023 and ₹393 crore in FY 2022.

The strategic acquisition by Prism Johnson signifies a further investment in its subsidiary, RQBE. This move is aimed at enhancing Prism Johnson’s position within the insurance industry and leveraging RQBE’s capabilities to expand its service offerings. By subscribing to additional equity shares through the rights issue, Prism Johnson strengthens its financial commitment to RQBE’s growth and operational strategies.

The acquisition is expected to bolster Prism Johnson’s portfolio diversification and contribute positively to its overall business objectives. It underscores Prism Johnson’s confidence in RQBE’s market potential and its commitment to supporting the subsidiary’s continued development in the competitive landscape of general insurance in India.

With no change in Prism Johnson’s shareholding percentage in RQBE following the acquisition, the transaction aligns with the company’s strategic goals of maintaining stability and strengthening its subsidiary’s market position. Prism Johnson continues to focus on prudent investments that enhance shareholder value and contribute to sustainable growth across its diversified business interests.

About Prism Johnson Ltd 

Established in 1992, Prism Johnson Limited stands as one of India’s leading integrated companies in building materials. It offers a diverse array of products, including cement, ready-mixed concrete, tiles, sanitaryware, and bath fittings.

On July 3, 2024, the share price of Prism Johnson Ltd opened at ₹171.09, touching the day’s low at ₹168.30, as of 10:10 AM on the NSE.

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.