Power & Instrumentation (Gujarat) Limited (PIGL) has emerged victorious in a significant arbitration case against Chennai Port Trust, securing an award of ₹4.09 crore plus 18% annual interest. The company announced this favorable outcome in a regulatory filing to the stock exchanges.

Arbitration Details

The arbitration award, issued by the Arbitral Tribunal under the Arbitration and Conciliation Act, 1996, stems from a dispute related to an agreement dated March 21, 2014. The contract in question involved providing power supply arrangements for the Navy at Madhusudan Jetty in Chennai Port Trust.

Financial Implications

The Arbitral Tribunal has ruled in favor of PIGL, granting the company the following:

This decision is expected to have a positive impact on the company's financial position, as stated in their regulatory filing.

Regulatory Compliance

PIGL disclosed this information in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company received the arbitration award on September 15 and promptly informed the stock exchanges on September 16.

Company's Statement

Maunish Gandhi, Company Secretary & Compliance Officer of Power & Instrumentation (Gujarat) Limited, stated in the filing, "There will be a positive impact on the financial position of the Company."

This arbitration victory represents a significant development for PIGL, potentially strengthening its financial standing and reinforcing its position in ongoing and future projects related to power supply and instrumentation.

Investors and stakeholders will likely keep a close watch on how this award translates into tangible financial benefits for the company in the coming quarters.

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.