Transformers and Rectifiers India Ltd to acquire controlling stake in Posco Poggenamp Electrical Steel Pvt Ltd

Transformers and Rectifiers (India) Limited (the "Company") has signed Share Purchase and Shareholders' Agreement to transfer controlling stake in a strategic investment in Posco Poggenamp Electrical Steel Private Limited (the "Investee Company").

Posco Poggenamp Electrical Steel Private Limited manufactures of CRGO laminations for Transformer & Reactors up to 765 kV class / 500 MVA and capable to process up to 1200 kV class/1000 MVA rating. It's installed capacity of 24000 MT/ per annum. One of the largest and finest facility of India with all approvals in place.

Electrical steel, popularly known as ColdRolled Grain-Oriented (CRGO) steel, is an essential material used primarily in the cores of transformers. It is engineered to have a specific grain structure that reduces energy loss during the magnetic flux process in transformers.

Without CRGO transformers cannot be built. Typically, CRGO contributes around 33% of the Raw Material cost in transformer.

Acquisition will help TARIL to become fully integrated for processed CRGO requirements in addition to that it will generate significant revenue by serving external customers. On standalone basis this strategic acquisition will help TARIL 100bps to 150bps increase in EBIDTA Margins.

Shares of Transformers And Rectifiers (India) Limited was last trading in BSE at Rs. 1024.20 as compared to the previous close of Rs. 975.70. The total number of shares traded during the day was 21434 in over 768 trades.

The stock hit an intraday high of Rs. 1024.45 and intraday low of 977.10. The net turnover during the day was Rs. 21670522.00.

Source : Equity Bulls

Keywords

TransformersAndRectifiersIndia INE763I01026 TRIL StakeAcquisition PoscoPoggenampElectricalSteel