SPR Engenious Limited (SEL), a wholly owned subsidiary of Shriram Pistons & Rings Limited (SPRL), has entered into a definitive agreement to acquire a 100% equity stake in TGPEL Precision Engineering Limited (TGPEL). The acquisition, valued at INR 2,200 million in Enterprise Value, marks a strategic move to expand SEL’s business portfolio into precision engineering and high-precision plastic components.
The Share Purchase Agreement was executed on December 10, 2024, with the transaction expected to close by December 31, 2024, subject to the fulfilment of customary conditions.
Details of the Acquisition
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- Target Entity: TGPEL Precision Engineering Limited
- Authorized Share Capital: INR 70 crore
- Paid-up Share Capital: INR 39.58 crore
- FY 2023-24 Revenue: INR 1,183 million
- Target Entity: TGPEL Precision Engineering Limited
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- Consideration: The acquisition will be completed for a cash consideration based on the Enterprise Value, with adjustments for debt, working capital, and cash equivalents as on the closing date.
- Industry Focus: TGPEL operates in the precision engineering sector, specializing in the manufacturing of plastic injection moulded components and precision tooling for automotive and industrial applications.
Strategic Rationale
The acquisition aligns with SEL’s growth strategy, providing new opportunities in precision engineering while diversifying beyond Internal Combustion Engine (ICE) components. TGPEL is recognized for its expertise in end-to-end solutions, from mould conceptualization to product assembly, making it a valuable addition to SEL’s business model.