Introduction:
Leading transformer manufacturer has signed an agreement to acquire a controlling stake in Posco Poggenamp Electrical, a major CRGO steel manufacturer. The strategic acquisition aims to enhance production capabilities and improve EBITDA margins by 100-150 basis points.
Share price movement of Transformers and Rectifiers:
On December 5, 2024, Transformers and Rectifiers (India) Ltd. opened at ₹1,028.00, up 0.37% from its previous close of ₹1,024.20. The stock reached a high of ₹1,059.00 (3.4%) and a low of ₹995.10. By 1:01 PM, it traded at ₹1,028.50, a 0.42% increase, with a market cap of ₹15,436.03 crore.
TARIL acquires controlling stake:
Transformers and Rectifiers (India) Ltd has signed a Share Purchase and Shareholders’ Agreement to acquire a controlling stake in Posco Poggenamp Electrical Steel Private Limited, a leading manufacturer of CRGO steel laminations for transformers.
The acquisition aims to integrate the company’s processed CRGO steel requirements and will boost its EBITDA margins by 100-150 basis points. This will help TARIL serve external customers, thus generating revenue and enhance its transformer production capabilities.
Posco Poggenamp, which manufactures high-quality CRGO steel for power and distribution transformers, will be a strategic addition to TARIL’s business. The agreement remains confidential regarding the size, but the acquisition is expected to be completed within 7 days.
Recent news on Transformers and Rectifiers:
As of October 8, 2024, Transformers and Rectifiers (India) Ltd. reported a 2,731% YoY increase in net profit to ₹45.3 crore for Q2 FY24. Revenue surged 79.4% to ₹461 crore, with other income rising to ₹11.8 crore.
Stock performance of Transformers and Rectifiers for Period of 1 week, 6 months and 1 year:
Transformers and Rectifiers (India) has demonstrated impressive growth, with a 4.24% return over the past week. Over the last six months, its return has surged by 35.6%, while a remarkable 426% return has been achieved over the past year.
Shareholding pattern of Transformers and Rectifiers:
| All values in % | Sep 2024 | Jun 2024 | Mar 2024 |
| Promoter | 66.20% | 66.20% | 66.20% |
| FII | 9.30% | 8.00% | 7.90% |
| DII | 7% | 6% | 5% |
| Public | 17.60% | 19.50% | 20.60% |
About Transformers and Rectifiers:
Transformers & Rectifiers (India) (NSE: TARIL) manufactures power, distribution, furnace, and specialized transformers. Established in 1994, the company operates two manufacturing facilities in Ahmedabad, with a reputation for world-class infrastructure.
Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.
