Hi-Tech Pipes Limited has informed the Exchange about Acquisition
HITECH · price
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Hi-Tech Pipes Limited has approved the acquisition of 100% stake in Sain Software Systems Private Limited for a cash consideration of Rs. 25.77 crore, based on an independent valuation report. The deal is essentially to acquire the land and building owned by the target company, which will be used as the company's own office premises for captive use. Sain Software Systems is an IT services firm with nil turnover over the last three years and a net worth of Rs. 2.35 crore. Post-acquisition, it will become a wholly owned subsidiary and be rebranded to align with Hi-Tech Pipes' steel pipe business. The target is treated as a related party due to common directorship by promoter Ajay Kumar Bansal, but the deal is being done at arm's length. No regulatory approvals are needed, and the transaction is expected to complete within 90 days.
This is a small, tactical real estate-led acquisition rather than a strategic business expansion, given the target has no operating revenues. Shareholders should view it as a capital deployment of Rs. 25.77 crore for own office space, with no immediate revenue accretion. The stock impact is likely to be neutral to mildly positive as it brings operational control over a long-term asset.