Board Finance Committee at its meeting today has approved definitive agreements to be entered with DNV Global Pvt. Ltd. for acquiring 53% Equity Shares of DNV Global Pvt. Ltd.
Awaiting price reaction for this filing.
DCM Shriram's Board Finance Committee has approved definitive agreements to acquire a 53% equity stake in DNV Global Private Limited, a hardware manufacturer for windows and doors, for a total consideration of Rs. 44 crores. This includes Rs. 31 crores for fresh equity subscription and Rs. 13 crores for purchasing shares from existing promoters. DNV Global reported a turnover of Rs. 60 crores and EBIDTA of Rs. 6.36 crores in FY25, showing steady growth from Rs. 44.23 crores turnover in FY23. The acquisition is aimed at backward integration for the company's Fenesta Windows & Doors business and creating a new hardware line under the Fenesta division. The deal is expected to be completed within 8 weeks and is not a related party transaction, with cash being the mode of consideration.
This acquisition strengthens DCM Shriram's Fenesta division by integrating hardware manufacturing, potentially improving margins and supply chain control. It is a strategic, small-ticket deal (Rs. 44 crores vs. in-principal approval of Rs. 65 crores) and unlikely to materially move the stock, but signals focused expansion in the building solutions segment.