Foseco India Limited has informed the Exchange regarding Outcome of Board Meeting held on August 22, 2025.
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Foseco India's board has approved acquiring 75% (42 lakh shares) of Morganite Crucible (India) Limited (MCIL) from the Morgan Group promoters at INR 1,557 per share, for an aggregate value of INR 653.94 crore. The deal will be paid entirely through a share swap — Foseco will issue 11,50,800 of its own equity shares (15.27% of post-issue capital) at INR 5,674 per share to the MCIL promoters, at an exchange ratio of 274 Foseco shares for every 1,000 MCIL shares. As the acquisition crosses 25% voting rights and triggers a change in control of MCIL, Foseco must launch a mandatory open offer for an additional 25% (up to 14 lakh shares) of MCIL from public shareholders at INR 1,557.15 per share, worth up to INR 218.01 crore. MCIL, a manufacturer of crucibles and foundry consumables with FY25 revenue of INR 182.15 crore, is being acquired as part of the global Vesuvius Group's purchase of Morgan's Molten Metal Systems business, aimed at expanding the group's foundry footprint into the non-ferrous and Indian markets. Shareholder approval will be sought at an EGM on September 21, 2025, with deal completion targeted by October 15, 2025.
This is a sizeable acquisition for Foseco India — it will be paid entirely through an equity issuance, causing about 15% dilution for existing shareholders but adding MCIL's INR 182+ crore revenue business to the consolidated top line. The mandatory open offer for MCIL public shareholders at INR 1,557.15 per share provides a clear price benchmark and exit opportunity. The transaction is strategically aligned with the parent's global strategy, and the share-swap nature limits immediate cash outflow, though shareholders should watch the EGM outcome and the eventual post-merger integration benefits.