BSEGTV Engineering LtdHighNeutral
Announced Mon, 23 Mar · 15:07 IST

Outcome of Board Meeting.

Listed Co AcquisitionStrategic Transactions View source PDF

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AI summary

The Board of GTV Engineering approved the acquisition of 35.31% equity stake in Chirchind Hydro Power Private Limited (CHPPL) from GTV Infrastructures Pvt Ltd, which will take GTV Engineering's total holding in CHPPL to 51%, making it a subsidiary. The deal is structured as a share swap, with GTV Engineering issuing up to 39,42,047 equity shares at Rs. 59.65 per share (including a Rs. 57.65 premium) valued at approximately Rs. 23.52 crore. CHPPL is engaged in small hydro power generation and heavy steel fabrication, with FY25 turnover of Rs. 32.60 crore. Upon completion, Shivalik Energy Pvt Ltd will become a step-down subsidiary. The Board also approved loans/investments up to Rs. 100 crore under Section 186, approved the related party transaction, and fixed April 16, 2026 as the EGM date for shareholder approval.

Likely market impact

This is a diversification move into hydro power and a step-up in scale, potentially boosting consolidated revenue (CHPPL posted Rs. 32.60 cr turnover). However, it is a related party transaction involving promoter-linked entities, and the share swap will dilute existing shareholders by issuing ~39.4 lakh new shares. Shareholders should watch the EGM outcome on April 16, 2026 for final approval.