On June 8, 2024, Maithan Alloys Limited announced the acquisition of equity shares of Power Finance Corporation Ltd through a stock exchange. The entity being acquired, Power Finance Corporation Limited, belongs to the financial institution industry.
Maithan Alloys Limited acquired Power Finance Corporation Limited shares through the stock exchange as part of its investment strategy to realise short-term and long-term investment gains. It’s crucial to note that Maithan Alloys Limited has no intentions to gain direct or indirect control over Power Finance Corporation Limited’s management. This acquisition aligns with Maithan Alloys Limited’s investment objectives and doesn’t deviate from its core business interests.
Details of Acquisition
The acquisition process, initiated on June 7, 2024, has been completed within the indicated timeframe. Maithan Alloys Limited opted for a cash consideration method for the acquisition. The total acquisition cost amounted to ₹101 crore, reflecting the value of the transaction on June 7, 2024. Initially, Maithan Alloys Limited acquired 0.06% of shareholding, equivalent to 20,86,405 shares. Subsequently, by June 7, 2024, the total shareholding acquired rose to 0.07%, representing 25,28,005 shares.
As of March 31, 2024, Power Finance Corporation Limited reported significant financial metrics. The company’s turnover stood at ₹46,022 crore, indicating the total revenue generated from its operations. Meanwhile, the Profit After Tax (PAT) amounted to ₹14,367 crore, reflecting the net income earned by the company after deducting all expenses, taxes, and interest. Power Finance Corporation Limited’s net worth as of the same date was recorded at ₹79,203 crore, representing the total assets minus total liabilities.
Power Finance Corporation Ltd (PFC) is a distinguished Schedule-A Maharatna Company operating under the Ministry of Power’s administrative purview. Recognised as a leading Non-Banking Financial Corporation, PFC holds the status of an Infrastructure Finance Company, as designated by the RBI.
Maithan Alloys specialises in manufacturing and exporting three main bulk Ferroalloys: ferro manganese, silica manganese, and ferrosilicon. Additionally, the company generates and supplies Wind Power and operates a Captive Power Plant.
On June 10, 2024, Maithan Alloys share price opened at ₹1,161.00, touching the day’s high of ₹1,240.00 as of 02:18 PM on the NSE.
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.
Published on: Jun 10, 2024, 5:55 PM IST
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