Triveni Engineering acquires significant stake in Sir Shadi Lal Enterprises
Triveni Engineering & Industries Ltd., a leading conglomerate in sugar production, high-speed gears, and water management, has announced a strategic acquisition, purchasing an additional 36.34% stake in Sir Shadi Lal Enterprises Limited (SSEL) for a total of ₹44.83 crore. This acquisition was executed at ₹235 per equity share and, as a result, Triveni’s total holding in SSEL now stands at 61.77%, effectively making SSEL a subsidiary of Triveni.
This significant investment underscores Triveni’s commitment to bolstering its sugar and alcohol divisions. The acquisition, a strategic milestone, was facilitated through a Share Purchase Agreement with members of the Lal family, part of the Second Promoter Group. With SSEL’s operations proximate to two of Triveni’s largest sugar units, the company anticipates operational and logistical synergies that will enhance efficiencies and benefit various stakeholders, including the local farmer community.
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 of SSEL, which represents 26% of the Voting Share Capital. This move is expected to further solidify Triveni’s market position and optimize its production capabilities.
“The acquisition of 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,” said Tarun Sawhney, Vice Chairman & Managing Director of Triveni. He emphasized the expected benefits for both companies through enhanced operational efficiencies and support to the farming community.
Cyril Amarchand Mangaldas (CAM) is acting as the legal advisor, and Ambit Private Limited is managing the open offer, ensuring a seamless transition and adherence to regulatory requirements.