Asahi India Glass Limited (AIS), a leading player in the glass manufacturing industry, has made a strategic decision to divest its stake in TGPEL Precision Engineering Limited (TGPEL). This move was formalised with a Share Purchase Agreement (SPA) dated 10th December 2024. Here’s an overview of the transaction and its implications for both parties. The share price of Asahi India Glass was trading up by 0.73% in early deals as of December 11, 2024.
TGPEL is engaged in designing, manufacturing, and assembling intricate plastic injection-moulded components and high-quality moulds. AIS, along with other shareholders, sold their entire stakes in TGPEL to SPR Engenious Limited, a wholly-owned subsidiary of Shriram Pistons & Rings Limited.
Key details of the transaction include:
Post-transaction, TGPEL will cease to be an associate company of AIS.
For the financial year ending 31st March 2024, TGPEL contributed ₹6.22 crore to AIS’s consolidated net profit of ₹327.98 crore. This represents a modest 0.27% of AIS’s total net profit, indicating minimal impact on AIS’s overall financials.
SPR Engenious Limited, the acquirer, is a wholly-owned subsidiary of Shriram Pistons & Rings Limited. The company specialises in engineering solutions and does not belong to AIS’s promoter or promoter group. This ensures the transaction does not fall under related-party transactions.
AIS has adhered to the regulatory requirements under SEBI’s Listing Obligations and Disclosure Regulations (LODR). The sale has been conducted at arm’s length, ensuring transparency and compliance with corporate governance norms.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
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