Tikona Communication to Acquire Fusionnet Web Services for Rs 256.84 Crore

Tikona Communication Limited (formerly Grand Foundry Limited) has announced an Extraordinary General Meeting (EGM) scheduled for October 28, 2026, to initiate a massive corporate restructuring. The key proposals include a significant capital increase to Rs 138 crore and a strategic acquisition valued at Rs 256.84 crore.

Reader Takeaway: Major expansion through acquisition and equity infusion marks a shift, though long-term debt and dilution are key risks.

What just happened

The company plans to acquire a 90.82% stake in Fusionnet Web Services Limited. This acquisition will be funded by issuing 8.56 crore Redeemable Non-Convertible Cumulative Preference Shares (RNCPS) valued at Rs 30 each. These preference shares carry a 3.20% dividend rate and are redeemable after 10 years at a 200% premium.

Preferential Issue Details

Tikona Communication aims to raise approximately Rs 98.85 crore through:

• Issuance of 8.84 crore convertible warrants at Rs 10 per warrant.
• Issuance of 1.04 crore equity shares to non-promoters at Rs 10 per share.

The funds are earmarked for subsidiary support (Rs 84.85 crore) and general corporate purposes (Rs 14 crore).

Related Party Transactions

The company is seeking omnibus approval for financial and operational dealings with SAR Televenture Limited, Fusionnet Web Services, and Parametrique Electronic Solutions. The proposed limits for financial assistance reach up to Rs 3,000 crore for SAR Televenture and Rs 500 crore for the others, marking a significant increase in inter-group financial activity.

Risks to watch

Investors should closely track the dilution impact of the new equity and warrants. The significant premium on the RNCPS redemption and the high dividend obligation add long-term financial pressure. Additionally, the scale of related party transactions warrants close scrutiny regarding corporate governance and capital allocation efficiency.