Jayant Infratech Ltd has submitted a clarification letter to BSE Limited to rectify a typographical error in the indicative time period for the completion of its proposed acquisition of M/s. Jayant Infraprojects on a slump sale basis.

The company stated that the error was unintentional and not deliberate. The revised disclosure confirms that the acquisition is proposed to be completed within six months from the date of execution of the Business Transfer Agreement, subject to shareholder approval and in-principle approval from stock exchanges.

Acquisition details and consideration

The transaction involves the acquisition of the remaining 70% business interest in M/s. Jayant Infraprojects, an Association of Persons (AOP). Jayant Infratech currently holds a 30% stake in the AOP. The total lump-sum purchase consideration for the entire entity is ₹1,256.67 lakh as per valuation. The existing 30% share will be adjusted against this total, with the balance payable for the remaining 70% stake.

The target entity is engaged in railway electrification, electrical contract work, and civil construction. The line of business aligns with the listed entity's operations, enabling consolidation and full control over the acquired undertaking.

Related party transaction status

The proposed acquisition constitutes a Related Party Transaction under Section 2(76) of the Companies Act, 2013, and Regulation 2(1)(zb) of the SEBI Listing Regulations. Nilesh Jobanputra and Jai Jobanputra, members of the AOP, are also promoter and promoter group members of Jayant Infratech. The company disclosed that the transaction is being undertaken on an arm's length basis and is considered material under Regulation 23 of the SEBI Listing Regulations.

Target entity financial history

The target entity, incorporated on March 15, 2016, reported the following turnover figures for the last three financial years:

The significant fluctuation in turnover between FY25 and FY26 highlights the variable nature of contract-based revenue in the infrastructure sector.

Jayant Infratech Limited has approved the acquisition of the business undertaking of M/s. Jayant Infraprojects on a slump sale basis. The board meeting held on October 1, 2026, sanctioned the transaction to consolidate the company's existing investment and achieve full ownership control over the target entity.

The total lump-sum purchase consideration is ₹1,256.67 lakh, based on the valuation of the Association of Persons (AOP). The company currently holds a 30% stake in the AOP. This transaction involves acquiring the remaining 70% business interest from the other members. The existing 30% share will be adjusted against the total purchase consideration, with the balance payable for the remaining stake.

Transaction Structure and Consideration

The acquisition is structured as a slump sale of the AOP as a going concern pursuant to a Business Transfer Agreement. The payment mode is cash consideration. The deal is classified as a related party transaction under Section 2(76) of the Companies Act, 2013, and Regulation 2(1)(zb) of the SEBI Listing Regulations. It is also considered material under Regulation 23 of the SEBI Listing Regulations. The company stated that the transaction is being undertaken on an arm's length basis.

Mr. Nilesh Jobanputra and Mr. Jai Jobanputra are members of the Association of Persons and are also promoter and promoter group members of the listed company. The transaction requires approval from the members of the company and in-principle approval from the stock exchanges.

Target Entity Profile

M/s. Jayant Infraprojects was incorporated on March 15, 2016. The entity operates in the business of railway electrification, electrical contract work, and civil construction. Its core activity involves the design, drawing, supply, erection, and commissioning of 25kV, 50Hz Single Phase Traction Overhead Equipment for the Railways.

The target entity's financial performance over the last three fiscal years shows significant volatility in turnover:

Strategic Rationale

The proposed acquisition will enable the company to consolidate its existing investment in the target entity. Since the target operates in the same line of business as the listed entity, specifically railway electrification and infrastructure contracting, the move ensures strong operational and strategic alignment. The acquisition is proposed to be completed within twelve months from the date of execution of the Business Transfer Agreement, subject to regulatory and shareholder approvals.

What the Numbers Show

The target entity's revenue trajectory indicates a sharp recovery in FY26 after a significant contraction in FY25. Turnover fell from ₹18.56 crore in FY24 to ₹6.28 crore in FY25, representing a decline of approximately 66%. However, FY26 turnover surged to ₹22.58 crore, exceeding the FY24 level by roughly 21.6%. This pattern suggests that the target entity faced operational or market headwinds in FY25 but has since rebounded strongly, potentially driven by renewed order execution or contract completions in the railway sector.