Man Industries (India) has completed the acquisition of a 100% equity stake in National Pipe Company Limited (NPC) for a total consideration of USD 102 Million (~INR 1,000 Crores). The transaction was executed through Man International Steel Industries Company (MISIC), a wholly owned subsidiary incorporated in the Kingdom of Saudi Arabia. The Board of Directors of the company approved the completion of this transaction at its meeting held on May 21, 2026. The company disclosed the investor presentation regarding this acquisition on May 26, 2026.

Acquisition Overview

The following table outlines the key details of the transaction:

Strategic Rationale and Operations

NPC is an established manufacturer of HSAW and LSAW pipes with an installed manufacturing capacity of approximately 430,000 MT per annum. The acquisition provides Man Industries with direct access to infrastructure, energy, desalination, and industrial opportunities in Saudi Arabia. NPC is a profit-making and debt-free organization with a healthy order book, serving reputed customers such as Saudi Aramco, Saudi Water Authority, and Qatar Petroleum. The facility also maintains adequate working capital and cash balances to support ongoing operations and future growth.

Financial Highlights

The acquisition was completed at an attractive valuation of 1.5x EV/EBITDA and 0.7x P/BV on CY2025, against prevailing Saudi listed peer valuations of 7x–9x EV/EBITDA and 2x–3x P/B. NPC carries a strong balance sheet with cash and liquid assets of USD 83 million and a net worth of USD 158.63 million.

Market Access and Future Plans

The deal is expected to significantly enhance the company's Middle East and international operations. Going forward, the acquired facility will feature a Coating Mill with External & Internal Coating Plant to serve the Kingdom's growing demand for coated pipeline solutions. The transaction is strategically compelling, margin-accretive and strongly EPS-accretive from Day 1. The acquisition positions MAN Industries at the heart of Saudi Arabia's infrastructure Supercycle, underpinned by significant state budget allocations and annual capex plans. The company projects that KSA operations will contribute ~45-50% of consolidated group revenue by 2030, with a combined revenue potential of INR ~8,500 Cr and a combined EBITDA margin of ~15–17%.

Man Industries (India) Limited's board of directors has approved a significant corporate guarantee to support its subsidiary's expansion plans in the Middle East. The decision was announced following a board meeting held on April 22, 2026, demonstrating the company's commitment to supporting its international operations.

Board Meeting Outcome

The board meeting, which commenced at 09:30 P.M. and concluded at 10:02 P.M. on April 22, 2026, resulted in the approval of a corporate guarantee worth USD 70 million. This guarantee will be provided in favor of lenders for Man International Steel Industries Company (MISIC), which is a wholly owned subsidiary of Man Industries (India) Limited.

Guarantee Details and Purpose

The corporate guarantee has been structured to facilitate MISIC's business expansion in Saudi Arabia. The subsidiary requested this financial backing from its parent company to support its growth initiatives in the region.

Regulatory Compliance and Disclosure

The approval was made in accordance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has provided comprehensive details as required under the amended regulations and SEBI Master Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024. The formal communication was sent to both BSE Limited (Scrip Code: 513269) and National Stock Exchange of India Ltd. (Scrip ID: MANINDS).

Financial Impact Assessment

According to the company's disclosure, the corporate guarantee will be treated as a contingent liability for Man Industries (India) Limited. The board has assessed that at this point, there is no immediate impact of this corporate guarantee on the listed entity. Additionally, the company confirmed that promoter groups or group companies have no interest in this transaction.

Strategic Implications

This corporate guarantee represents Man Industries' strategic support for its international subsidiary's expansion plans in Saudi Arabia. The move demonstrates the parent company's confidence in MISIC's business prospects and its commitment to facilitating growth in key international markets. The guarantee structure ensures that MISIC has access to necessary funding from lenders while maintaining the backing of its parent company.