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PNN
Mumbai (Maharashtra) [India], August 5: Power & Instrumentation (Gujarat) Limited (NSE - PIGL, BSE - 543912), one of the leading players in the electrical contracting and equipment industry, has announced the substantial fundraising of Rs 71.48 Cr through preferential equity shares & warrants, acquisition of a controlling stake in peaton electrical company limited. These decisions were taken during the recent board meeting and are subject to necessary approvals. Issue of Equity Shares: The board has decided to issue up to 34,39,000 Equity Shares of Rs 10 each at an issue price of Rs 83.75 per share, including a premium of Rs 73.75. amounting to Rs 28.80 Cr. The shares will be issued to the Non-Promoter Group on a preferential basis. Issue of Equity Warrants: The company is issuing 50,96,000 Equity Warrants at Rs 83.75 per warrant, amounting to Rs 42.68 Cr. These warrants will be issued to both the Promoter Group and Non-Promoter Group on a preferential basis. Among the 50,96,000 Equity warrants, 41,50,000 are issued to the promoter group, and the remaining 9,46,000 are issued to the non-promoter group. Acquisition of Controlling Stake in Peaton Electrical Company Limited (PECL): The company has decided to acquire a controlling stake in Peaton Electrical Company Limited, a manufacturer specializing in Electrical Panels, Compact Substations, and Bus Trunking Systems. This strategic acquisition aims to expand PIGL's footprint in the electricals market. Currently, PIGL holds a 15.23 per cent stake in PECL and plans to increase its shareholding to up to 60 per cent. The acquisition will be based on the valuation of PECL, with the consideration to be discharged in accordance with the share purchase agreement to be executed. These strategic decisions underline PIGL's commitment to expanding its market presence and enhancing shareholder value. The company remains focused on leveraging new opportunities to drive growth and profitability. All the decisions and actions outlined are subject to necessary shareholder and regulatory approvals. Commenting on the strategic decision, Padmaraj Padmnabhan Pillai, Managing Director, Power & Instrumentation (Gujarat) Limited, said, "These strategic initiatives are essential for our growth and market position. The substantial fund raise of Rs 71.48 Cr will be essential to fund our expansion, exploring new opportunities, and strengthen our competitive edge. The funds will also facilitate our acquisition of a controlling stake in Peaton Electrical Company Limited, increasing our shareholding to up to 60 per cent. This move will enhance our business portfolio, market presence, and operational capabilities by integrating PECL's expertise. We are committed to delivering value to our shareholders and stakeholders, and these steps align with our goal of sustainable growth and industry leadership. We are excited about the opportunities ahead and confident in our execution plans." (ADVERTORIAL DISCLAIMER: The above press release has been provided by PNN. ANI will not be responsible in any way for the content of the same)
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