Elpro International Limited has made a strategic move in the banking sector by acquiring a significant stake in HDFC Bank, one of India's leading private sector banks. The company has purchased 1.9 lakh equity shares of HDFC Bank for a total investment of ₹37.49 crore.

Strategic Investment in Banking Sector

According to a regulatory filing by Elpro International, the acquisition represents the company's strategic investment in the banking sector equity. This move aligns with Elpro's strategy to diversify its investment portfolio and capitalize on opportunities in the financial services industry.

Details of the Acquisition

The company disclosed the following details about the acquisition:

About HDFC Bank

HDFC Bank, the target of Elpro's investment, is a well-established player in the Indian banking sector. Some key information about HDFC Bank includes:

• Incorporation Date: August 30, 1994
• Registered Office: Mumbai, India
• Business Line: Banking and Financial Services
• Consolidated Turnover: ₹470,915.93 crore

HDFC Bank has a strong presence in urban, semi-urban, and rural India, offering a wide range of banking and financial services. The bank also has an international footprint with operations in countries such as Bahrain, Hong Kong, UAE, and Kenya.

Elpro's Investment Rationale

While specific reasons for the investment were not disclosed, Elpro International stated that the acquisition was made for investment purposes. This move could potentially allow Elpro to benefit from the growth and performance of one of India's largest private sector banks.

The acquisition does not fall under related party transactions, and no governmental or regulatory approvals were required for this investment.

This strategic investment by Elpro International in HDFC Bank shares demonstrates the company's confidence in the banking sector and its potential for growth. As the financial landscape continues to evolve, it will be interesting to see how this investment contributes to Elpro's overall portfolio performance in the coming years.

Elpro International Limited (BSE: 504000) announced a significant change in its auditing arrangements as R. Mehta & Associates, Chartered Accountants, resigned from their role as statutory auditors for two of the company's material subsidiaries. The resignation, effective July 30, 2025, impacts Ultra Sigma Private Limited and Elpro Realty Private Limited (formerly known as Faridabad Management Private Limited).

Reasons for Resignation

The auditing firm cited pre-occupation with other professional assignments as the primary reason for their departure. In their resignation letters, R. Mehta & Associates stated they were "unable to devote sufficient time to the audit of the Company," leading to their decision to step down from both positions.

Timeline and Impact

• Appointment Date: September 25, 2024
• Original Term Expiry: Annual General Meetings in 2029
• Resignation Effective Date: Close of business on July 30, 2025

Prior to their resignation, R. Mehta & Associates submitted Limited Review Reports for both subsidiaries for the quarter ended June 30, 2025, ensuring completion of their immediate responsibilities.

Regulatory Compliance

Elpro International Limited, in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, promptly informed the BSE Limited of this development. The company provided detailed annexures as required by SEBI Master Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024.

Auditor's Declaration

In their resignation letters, R. Mehta & Associates confirmed:

1. The information provided in their letters and attachments is correct and complete.
2. There are no material reasons for the resignation other than those stated.

Next Steps

While the immediate impact of this change on Elpro International Limited and its subsidiaries remains to be seen, the company will need to appoint new statutory auditors for Ultra Sigma Private Limited and Elpro Realty Private Limited. Stakeholders will likely be watching closely for announcements regarding the appointment of new auditors and any potential effects on the financial reporting process for these material subsidiaries.

The resignation of statutory auditors from key subsidiaries often prompts investors and market analysts to seek additional clarity on the company's financial health and governance practices. Elpro International Limited may face increased scrutiny in the coming weeks as it navigates this transition in its auditing relationships.