Craftsman Automation Limited has agreed to invest ₹1,07,25,000 in Sterling MH Wind Private Limited to acquire a 26.66% equity stake, securing a long-term renewable energy supply for its manufacturing facilities in Maharashtra. The transaction, disclosed on July 27, 2026, involves the subscription of 2,14,500 equity shares at a price of ₹50 per share, including premium. This strategic move is designed to optimize power procurement costs while advancing the company’s sustainability initiatives through the Group Captive framework prescribed under the Electricity Act, 2003 and Electricity Rules, 2005.

The investment is structured through a Power Supply Agreement (PSA), a Share Subscription and Shareholders' Agreement (SSSHA), and a Supplementary Agreement with Sterling MH Wind Private Limited and its sponsor, Sterling Agro Industries Limited. The disclosure was made pursuant to Regulation 30 read with Schedule III of the SEBI (LODR) Regulations, 2015. The company confirmed that the transaction does not constitute a related party transaction, as neither the promoters nor group companies of Craftsman Automation hold any interest in the target entity.

Sterling MH Wind Private Limited is a Special Purpose Vehicle (SPV) incorporated on February 2, 2026, specifically for the development and operation of a wind power project located in the Satara and Dhule districts of Maharashtra. The target entity has an authorized capital of ₹15,00,000 and a paid-up capital of ₹1,00,000. As a newly incorporated entity, it reported no turnover for FY25 or the preceding three years. The project is promoted by Sterling Agro Industries Limited, an established entity operating under the NOVA Dairy brand with prior experience in renewable energy development.

The primary objective of this acquisition is to procure renewable wind power for Craftsman Automation’s manufacturing facilities in Maharashtra, including its Pune operations. By utilizing the Group Captive framework, the company aims to ensure a stable and cost-effective power supply. The transaction involves cash consideration only, with no share swap or other forms of payment. Completion of the acquisition is contingent upon the fulfillment of conditions set out in the transaction documents and the finalization of share subscription and allotment formalities.

Strategic Implications

The acquisition highlights a shift towards vertical integration in energy procurement for manufacturing operations. By taking a minority stake in a dedicated wind power SPV, Craftsman Automation mitigates exposure to volatile grid electricity prices while meeting regulatory and corporate sustainability targets. The involvement of Sterling Agro Industries Limited as the sponsor adds credibility to the project execution, given their established track record in the dairy sector and prior experience in wind and solar projects. This structure allows Craftsman Automation to benefit from renewable energy without bearing the full operational burden of power generation assets.

Shareholders of Craftsman Automation Limited approved a final dividend of ₹11.25 per equity share for FY26 and reappointed key leadership during the company’s 40th Annual General Meeting (AGM) held on July 23, 2026. While the resolutions passed with strong overall support, the re-appointment of Srinivasan Ravi as Chairman and Managing Director faced significant opposition from public institutional investors, who voted against the resolution at a rate of 18.17%. The approval increases the aggregate dividend outflow to approximately ₹29.42 crore, up from the initially estimated ₹26.84 crore, following a Qualified Institutions Placement (QIP) that added 22,98,850 equity shares to the capital base in June 2026.

The AGM was conducted via Video Conference/Other Audio-Visual Means (VC/OAVM) in compliance with Securities and Exchange Board of India (SEBI) Listing Regulations and the Companies Act, 2013. Dr. C.V. Madhusudhanan of KSR & Co Company Secretaries LLP served as the Scrutinizer, submitting the results under Regulation 44(3) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The cutoff date for ascertaining voting rights was July 16, 2026.

Voting Results Overview

Remote e-voting commenced on July 20, 2026, and concluded on July 22, 2026. A total of 422 shareholders voted successfully. The promoter group, holding 11,093,013 shares, voted in favor of all resolutions with 100% support. Public institutional investors showed varied support levels across different agenda items, particularly regarding executive appointments.

Leadership Continuity and Investor Sentiment

The special resolutions secured shareholder approval for the re-appointment of Srinivasan Ravi as Chairman and Managing Director and Ravi Gauthamram as Whole Time Director. Both appointments are for a period of five years, effective from October 1, 2026.

While the re-appointment of Ravi Gauthamram received 99.07% support, the resolution for Srinivasan Ravi’s CMD role saw 18.17% opposition from public institutional investors, though it still passed with 90.77% overall support. In contrast, his re-appointment as a Director by rotation received 99.44% support, indicating that the dissent was specific to the executive role rather than his board membership.

What the Numbers Show

The increase in total dividend payout from ₹26.84 crore to ₹29.42 crore highlights the impact of the recent QIP on shareholder entitlements. Since the newly allotted shares rank pari passu with existing equity shares, the expanded capital base directly increased the aggregate liability for dividends without altering the per-share rate. This reflects the company’s commitment to maintaining consistent dividend policy despite recent capital restructuring. The high participation rate of 86.42% indicates robust investor interest in the company’s governance and financial decisions.