The Board of Directors of Classic Filaments Limited in their Board Meeting held today has considered and approved acquisition of Procasts Engineering Private Limited and Solven Power Systems ....
Awaiting price reaction for this filing.
Classic Filaments Limited's board approved the acquisition of two companies: Procasts Engineering Private Limited (51% stake for ~INR 12 crores) and Solven Power Systems Private Limited (75% stake for ~INR 2 crores). Both targets are related parties with common promoters, and the deals are arm's length. Procasts, incorporated in July 2021, reported provisional FY26 turnover of Rs. 31.20 crore. Solven Power, incorporated in May 2016, reported provisional FY26 turnover of Rs. 34.50 crore. The acquisitions are to be funded via a preferential issue of 47,17,740 equity shares at Rs. 51.50 each to 53 non-promoter investors, raising approx. Rs. 24.3 crore. The company also regularised multiple directors, increased borrowing limits to Rs. 100 crore, and plans to enter the IT sector. All resolutions require member approval.
The acquisitions, backed by a Rs. 24.3 crore preferential issue, could diversify revenue and expand scale, but related party nature and dilution (~17.5% from new shares) warrant scrutiny. Completion is expected within 60-90 days of fund infusion.