Power & Instrumentation (Gujarat) Limited (PIGL) has announced a significant move in the electrical manufacturing sector by acquiring an additional 35.82% stake in Peaton Electrical Company Limited (PECL). This strategic acquisition, valued at Rs 12.54 crore, was completed through a cash transaction, elevating PIGL's total shareholding in PECL from 15.24% to 51.06%.

Acquisition Details

The transaction, which makes PECL a subsidiary of PIGL, was disclosed in a filing to the National Stock Exchange of India and BSE Limited. Key points of the acquisition include:

• Consideration: Rs 12.54 crore in cash
• Previous Stake: 15.24%
• Additional Stake Acquired: 35.82%
• Total Stake Post-Acquisition: 51.06%

About Peaton Electrical Company Limited

Peaton Electrical, incorporated on November 22, 2006, specializes in manufacturing:

• LT panels
• Bus trunking systems
• Compact substations
• Other electrical materials

The company has demonstrated financial performance over the past three years:

Strategic Implications

This acquisition is expected to foster collaboration between PIGL and PECL in several key areas:

1. Product development
2. New technologies
3. Supply chain relationships in the electrical materials business

PIGL's management anticipates that this strategic investment will enable PECL to create additional manufacturing capacity for LT panels, bus trunking systems, and other electrical materials as required by PIGL.

Management and Operations

It's noteworthy that PECL's existing promoters will continue to lead the management and operations post-acquisition, ensuring continuity and leveraging their industry expertise.

Regulatory Compliance

The transaction has been classified as a related party transaction, conducted at arm's length. It has received necessary approvals from:

• The Audit Committee
• The Board of Directors of PIGL

This approval process ensures compliance with Section 177 of the Companies Act, 2013, and Regulation 23 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Industry Impact

This acquisition strengthens PIGL's position in the electrical manufacturing sector, particularly in the areas of LT panels, bus trunking systems, and compact substations. The move is likely to enhance PIGL's manufacturing capabilities and market presence in the electrical materials business.

As the electrical manufacturing sector continues to evolve, strategic acquisitions like this one may play a crucial role in shaping the industry landscape and driving innovation in product development and technology.

Power & Instrumentation , a company specializing in power and instrumentation solutions, has announced a significant new contract in the renewable energy sector. The company has secured a work order worth Rs. 9.5 crore from Sadashiv Projects India Private Limited for a 5 MWP solar ground-mounted project in Gujarat.

Project Details

The contract encompasses a comprehensive scope of work, including:

• Design and engineering services
• Supply of materials and equipment
• Testing for the 5 MWP solar ground-mounted installations
• Various additional services

The project will be implemented at multiple locations across Gujarat, showcasing the company's capability to handle distributed solar installations.

Contract Value and Timeline

The work order, valued at Rs. 9.50 crore (Nine Crore Fifty Lakh), excludes Goods and Services Tax (GST). This substantial contract underscores the company's growing presence in the solar energy sector. The project has been given a tight timeline, with completion scheduled within 6 months from the date of award.

Regulatory Compliance

In compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Power & Instrumentation has made a formal disclosure to the National Stock Exchange of India Limited and BSE Limited.

Key Points of the Contract

Business Implications

This contract represents a strategic move for Power & Instrumentation, potentially strengthening its position in the renewable energy market. The company's ability to secure such projects may indicate growing demand for solar energy solutions in Gujarat and could lead to future opportunities in the sector.

Corporate Governance

The company has confirmed that this contract does not involve any related party transactions. Additionally, neither the promoter nor the promoter group has any interest in Sadashiv Projects India Private Limited, the entity awarding the contract.

As the renewable energy sector continues to expand in India, contracts like these highlight the ongoing opportunities for companies specializing in solar power infrastructure. Power & Instrumentation's success in securing this project may be indicative of its competitive edge in the market and its ability to contribute to India's growing clean energy capacity.