The board of the joint venture company will comprise of five directors. GML will have the right to nominate three directors, while PEL will have the right to nominate two directors. The parties will jointly appoint/nominate the chief executive officer (CEO), chief financial officer (CFO), auditor and other key managerial personnel (KMP) for the joint venture.
In the joint venture company, GML will hold 51% while PEL will hold 49%.
GML subscribed to 51,000 equity shares (51%) and PEL subscribed to 49,000 equity shares (49%) of the joint venture company at a face value of Rs 10 per share.
Premier Explosives is engaged in manufacture of high-energy materials like bulk explosives, packaged explosives, detonators, detonating fuses, solid propellants, pyrogen igniters, pyro devices, etc., having applications in mining, infrastructure, defense, space, homeland security and such other areas.
The company’s consolidated net profit stood at Rs 9.22 crore in Q3 FY25, steeply higher than Rs 1.71 crore in Q3 FY24. Net sales surged 272.4% to Rs 165.92 crore in Q3 FY25 as compared with Rs 44.56 crore posted in same quarter last year.
The counter declined 2.31% to Rs 329.75 on the BSE.