Image Source: PitchBook
Glance Finance Ltd has announced a significant investment move by acquiring equity shares in Kotson’s Private Limited (KPL), signaling its strategic intent to expand its investment portfolio in the engineering sector. This Rs 4.35 crore investment, aimed at long-term value creation, marks an important development for both companies involved.
Key Considerations of the Investment
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Glance Finance proposes to acquire 5,80,086 shares of KPL at Rs 75 per share (including Rs 65 premium), against the face value of Rs 10 per share, resulting in a total investment of Rs 4,35,06,450 on a private placement basis.
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Post-acquisition, Glance Finance’s holding in KPL will rise to 7,19,656 shares or 5.14% of KPL’s equity from the existing 1.07%, reflecting a strategic stake increase.
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The deal is a cash transaction and not related to any promoter or related party interests, ensuring an arm’s length transaction.
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The acquisition is expected to be completed by September 30, 2025, subject to agreement extensions.
Understanding Kotson’s Private Limited
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Founded in April 1978, KPL specializes in designing, manufacturing, and supplying advanced transformer solutions. Its product portfolio includes oil-filled, dry-type, special purpose, and renewable energy transformers.
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KPL operates a plant with a production capacity of 4,000 MVA and serves clients primarily within India.
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The company’s recent financial performance shows a revenue of Rs 16.45 crore for FY 2022-23, dipping to nil in FY 2023-24, followed by Rs 32.51 crore in FY 2021-22, illustrating fluctuating turnover likely due to varying project cycles or market conditions.
Strategic Rationale Behind the Investment
Glance Finance’s core business focuses on investment activities, mainly acquiring and holding equity shares to generate long-term capital appreciation. This investment in KPL aligns with its objective to participate strategically in growth sectors. Given KPL’s niche in advanced transformer manufacturing—a key segment in infrastructure and power sectors—the acquisition offers Glance Finance exposure to a high-potential industrial domain complementing its financial asset base.
No Regulatory Approvals Required
The investment requires no special governmental or regulatory approval, enabling a smooth completion process within the planned timeline.
In summary, this careful equity acquisition marks Glance Finance’s step toward deepening value through targeted investments beyond traditional financial assets, tapping into India’s growing energy infrastructure needs. Investors may watch this space for further expansion moves and performance developments related to this strategic holding.
Source: Company Disclosure to the Stock Exchanges
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