PIGL Acquires Additional 35.82% Stake in Peaton Electrical, Making it a Subsidiary for ₹12.54 Crore
The acquisition results in Peaton Electrical becoming a subsidiary, which is a significant corporate action for PIGL, leading to greater control and strategic integration. This move is expected to enhance PIGL's capabilities and market position in the electrical materials business.
The acquisition of an additional stake making Peaton Electrical a subsidiary signifies increased control and strategic alignment. The target company shows growth in turnover, and the stated objects of collaboration in product development and capacity creation are positive for future business integration and growth.
* Power & Instrumentation (Gujarat) Limited (PIGL) has acquired an additional 35.82% stake in Peaton Electrical Company Limited (PECL). * This acquisition increases PIGL's total shareholding in PECL to 51.06%, making PECL a subsidiary of the company. * The total cost of acquisition is ₹ 12.54 crore, paid as cash consideration. * PECL, incorporated on November 22, 2006, specializes in manufacturing unitized substations, MV/LV panels (up to 33 KV), LV panels like motor control centres, power control centres, PLC based panels, Bus trunking systems, auto synchronizing panels, APFCR panels, and distribution boards. * PECL's turnover for the last three financial years was: * FY 2022-23: ₹ 25.38 crore * FY 2023-24: ₹ 23.63 crore * FY 2024-25: ₹ 36.04 crore * The acquisition is a strategic investment aimed at fostering collaboration in product development, new technologies, and a preferred relationship for supplies in the LT panels, Bus trunking system, Compact Substation, and other electrical materials business. * PECL is expected to invest in creating incremental capacity for manufacturing these electrical materials as required by PIGL. * The transaction falls under related party transactions but was conducted at arm's length and approved by the Audit Committee and Board of Directors. * Promoter & Promoter Group held 100% of PECL before this acquisition, and current promoters will continue to lead management post-acquisition. * No governmental or regulatory approvals were required for this acquisition, and it has been completed.
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Power & Instrumentation (Gujarat) Limited filed this with the NSE as a statutory disclosure, categorised under mergers & acquisitions. It is a primary document, not a recommendation, and the desk marks it high impact, which is the band that most often changes something.
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