Kalpataru Power Transmission Ltd (KPTL) on Tuesday said it has entered into a definitive agreement with Tano India Private Equity Fund II (Tano) to acquire 19.94 per cent stake in Shree Shubham Logistics Limited (SSL) for Rs 64.66 crore.
"The amount will be paid through a non-cash equity swap transaction, in which 12,54,900 equity shares of KPTL will be issued to Tano at the value of Rs 515.25 per share, subject to relevant approvals," KPTL said in a filing to the Bombay Stock Exchange.
KPTL already own 80.06 per cent stake in Shree Shubham Logistic. Following the completion of this acquisition, SSL will become 100 per cent subsidiary of KPTL.
Established in 2007, SSL provides agriculture commodity warehousing solutions. The firm is operating and managing around 240 warehouses (owned and leased) with storage capacity of over 9 million sq. ft. area across nine states in India.
Commenting on the development, Manish Mohnot, Managing Director and CEO, KPTL said, "Over the last few years we have worked very hard to improve the operations and financial performance of SSL. Today SSL commands an industry leading position in the agriculture warehousing space given its thrust and ability to offer quality warehousing solutions and superior customer experience."
"Our ability to look at strategic partners for SSLL for future growth will be much more focussed with 100 per cent stake of KPTL in SSLL. We are thankful to Tano for partnering with us in SSL's growth journey and helping us with their expertise in scaling up SSL's operations," he added.
The valuation of the deal was done by ICICI Securities Ltd. (Merchant Banker) and Nikhil Singhi (Registered Valuer).
Ahead of the announcement, shares of KPTL closed trade at Rs 531.80 apiece, down 1.41 per cent, on the Bombay Stock Exchange on Tuesday.
Edited by Chitranjan Kumar