- Premier Energies Ltd to acquire 51% stake in Transcon Ind Ltd for Rs 500 crore
- Transcon Ind manufactures and sells various types of transformers
- Acquisition allows Premier Energies to enter power transformer manufacturing
Premier Energies Ltd. will acquire a majority stake in Hyderabad-based Transcon Ind Ltd. for Rs 500 crore. PEL will subscribe shareholding equivalent to 51%, according to a stock exchange filing on Thursday.
Transcon Ind manufactures and sells transformers of different types.
"The strategic acquisition enables the company to diversify into power transformer manufacturing and immediately establish a presence in this critical segment," Premier Energies said. "More than just diversification, it represents a calculated leap toward becoming a full-spectrum energy solutions provider by bridging the gap between generation and transmission."
The company aims to rapidly penetrate the market and scale operations efficiently. "The acquisition creates strong operational and market synergies with our existing solar module manufacturing business. It enhances our ability to deliver integrated energy solutions and cross-sell products to a broader customer base," the company said.
No government or regulatory approval is required for the proposed acquisition.
The deal will be completed within 90 days from the date of execution of the Share Subscription and Shareholders' Agreement subject to satisfactory completion of preconditions, as per the filing.
Premier Energies will announce its second quarter earnings on Oct. 28. The company is India's second largest fully integrated solar cell and solar module manufacturer.
The share price settled 0.9% higher at Rs 1,069 apiece on the NSE, after the announcement. The benchmark Nifty 50 was up 0.1%.
The stock has fallen 20% in the last 12 months and risen 7% on a year-to-date basis.
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