Triveni Engineering Expands Control Over Sir Shadi Lal Enterprises

On June 20, 2024, Triveni Engineering and Industries Ltd informed in a stock exchange filing the acquisition of an additional 36.34% stake in Sir Shadi Lal Enterprises Limited (SSEL).

The company stated that pursuant to a Share Purchase Agreement executed with Mr Rajat Lal, Mr Rahul Lal, and Ms Poonam Lal (Second Promoter Group) on June 20, 2024, Triveni Engineering and Industries Ltd acquired a 36.34% stake for a total consideration of ₹44.83 crore, at a price of ₹235 per equity share of SSEL. With this transaction, Triveni’s stake in SSEL has increased to 61.77%, making Sir Shadi Lal Enterprises Limited a subsidiary of the company.

Triveni is currently awaiting approval from the Securities and Exchange Board of India (SEBI) for an open offer to acquire up to 13,65,000 fully paid-up equity shares with a face value of ₹10 each, representing 26% of the voting share capital of Sir Shadi Lal Enterprises from its shareholders.

Cyril Amarchand Mangaldas (CAM) is acting as the company’s legal advisor, and Ambit Private Limited is acting as the Manager of the open offer.

Speaking on the transaction, the Vice Chairman and Managing Director, Mr Tarun Sawhney, said, “The acquisition of the stake in Sir Shadi Lal Enterprises is a strategic milestone for Triveni Engineering and Industries Limited. This will further add value to Triveni’s Sugar & Alcohol businesses and solidify the company’s position as one of the largest integrated sugar and alcohol producers in the country.”

He further added, “With SSEL’s proximity to two of our largest sugar units, we believe this transaction will lead to operational and logistical synergies and improved efficiencies, which will benefit both the companies and key stakeholders, including the farmer community.”

About Triveni Engineering and Industries Ltd

Triveni Engineering and Industries (TEIL) is a diversified industrial conglomerate with core competencies in alcohol, sugar, water treatment and power transmission. TEIL operates seven sugar mills in India. The company has state-of-the-art distilleries in Muzaffarnagar (2 facilities), Sabitgarh, Milak Narayanpur, and a newly commissioned one in Rani Nangal, totalling 860 KLPD. These distilleries produce ethanol, extra neutral alcohol (ENA), rectified spirit (RS), and denatured spirit (SDS).

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