Megatherm Induction Limited has moved to expand its industrial footprint by approving the incorporation of a joint venture focused on induction converter modules. The Board of Directors, meeting on August 1, 2026, sanctioned the creation of Sictech India Private Limited in partnership with Smart Induction Converter Technologies S.L. (SicTech). This strategic move is designed to establish a high-quality manufacturing and supply platform in India, leveraging SicTech’s proprietary Discrete Power Semiconductors technology alongside Megatherm’s operational expertise.

In addition to the joint venture, the Board approved entering into a loan agreement with Megatherm Cyprium INC. The agreement permits an unsecured loan of up to USD 500,000 for corporate purposes, including working capital and operational expenditures. The transaction is classified as a related-party transaction conducted at arm’s length, as Megatherm Cyprium INC is identified as a Joint Venture Entity. The Board also reappointed M/s. M S K A & Associates LLP as Statutory Auditors for a second consecutive five-year term.

Joint Venture Structure and Operations

The proposed joint venture, Sictech India Private Limited, will operate as an international partnership with distinct roles for each party. Megatherm Induction Limited will hold a 49% equity stake, while SicTech will retain a 51% majority ownership. SicTech acts as the technology owner and licensor of the intellectual property based on SicMosfet technology. Megatherm serves as the industrial and manufacturing partner and will function as the operational manager of the JV Company, subject to Board supervision.

The scope of business operations includes the manufacturing, assembly, testing, and supply of induction converter modules, transformers, and related systems. The rationale for the partnership centers on maximizing long-term value creation through profitable growth, technology leadership, and disciplined capital deployment. The arrangement is not classified as a related-party transaction involving promoters or group companies beyond the JV structure itself.

Loan Agreement Details

The Board authorized the execution of a loan agreement with Megatherm Cyprium INC to support its corporate activities. The facility is capped at USD 500,000 and is unsecured. The funds are intended for working capital requirements, operational expenditures, and other lawful business purposes. As per the disclosure under Regulation 30 of the SEBI Listing Regulations, Megatherm Induction holds no shareholding in Megatherm Cyprium INC, but the entity is linked through the joint venture framework. The transaction adheres to arm’s length principles.

Auditor Reappointment

The Audit Committee recommended the reappointment of M/s. M S K A & Associates LLP (formerly M S K A & Associates), Chartered Accountants, as Statutory Auditors. The firm, holding FRN 105047W/W101187, was reappointed for a second term of five consecutive years. Their tenure will commence from the conclusion of the 16th Annual General Meeting and extend until the conclusion of the 21st Annual General Meeting. This appointment is made pursuant to Section 139 of the Companies Act, 2013.

What the Numbers Show

The strategic allocation of equity in the new joint venture highlights a deliberate division of labor rather than a simple capital merger. By retaining only a 49% stake while assuming the role of operational manager, Megatherm Induction positions itself to leverage external proprietary technology without bearing the full financial risk of R&D. The simultaneous approval of a USD 500,000 loan facility to a related JV entity suggests immediate liquidity needs or working capital support for the initial phases of this international expansion. The reliance on a royalty-based consideration model for the JV implies that future cash flows will be tied directly to production volumes and technology utilization, aligning costs with operational output.

Megatherm Induction Limited will host an investor and analyst meet in Mumbai on July 3, 2026, to discuss publicly available information. The management will engage with investors through group and one-on-one sessions facilitated by its investor relations firm, Kaptify Consulting. This interaction provides stakeholders an opportunity to review the company's performance and outlook based on existing disclosures.

The meeting is scheduled to take place between 9 am and 4 pm. The company stated that no unpublished price sensitive information (UPSI) is intended to be discussed during the event. All interactions will be strictly based on information that is already in the public domain.

The disclosure was made pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The information will also be available on the company's website.

Megatherm Induction noted that the meeting may be cancelled, rescheduled, or postponed due to exigencies on the part of analysts, investors, or the company management. Abanti Saha Basu, Company Secretary & Compliance Officer, signed the intimation on June 29, 2026.