Triveni Engineering & Industries has acquired an additional 36.34 per cent stake in Uttar Pradesh-based sugar firm Sir Shadi Lal Enterprises Ltd for ₹45 crore, securing the management control.
Pursuant to a share purchase agreement executed with a promoter group on June 20, 2024, Triveni, which is one of the largest integrated sugar producers in the country said it acquired 36.34 per cent stake for an aggregate consideration of ₹44.83 crore, i.e. at a price of ₹235 per equity share of Sir Shadi Lal Enterprises.
Triveni has also presence in engineered-to-order high-speed gears and gearboxes, water and wastewater management business. Currently Triveni Engineering has seven sugar mills 860 kilolitres per day capacities distilleries in operation in Uttar Pradesh.
After the completion of the transaction, Triveni Engineering’s stake in Sir Shadi Lal Enterprises has now increased to 61.77 per cent.
The company is awaiting approval from the Securities and Exchange Board of India (SEBI) for an open offer for acquisition of up to 13,65,000 fully paid-up equity shares of face value of ₹10 each, representing 26 per cent of the voting share capital of Sir Shadi Lal Enterprises from its shareholders.
Tarun Sawhney, Vice Chairman and Managing Director of Triveni termed the acquisition of stake as a strategic milestone for the company. “This will further add value to Triveni’s sugar and alcohol businesses and solidify the company’s position as one of the largest integrated sugar and alcohol producers in the country,” Sawhney said.
He said that the acquisition would lead to operational and logistical synergies and improved efficiencies which will benefit both the companies and key stakeholders, including the farmers.