Triveni Engineering hikes stake in Sir Shadi Lal Enterprises to 61.77%, launches open offer

Following the additional stake purchase, Triveni Engineering’s stake in Sir Shadi Lal Enterprises stands at 61.77% and the latter has become a subsidiary of the company. SSEL is engaged in the business of manufacturing sugar ethanol/alcohol with two manufacturing units in Uttar Pradesh. For the year ending on March 31, 2024, the firm had a turnover of ₹462.15 crore with a net loss of ₹9.18 crore.

The firm said it is awaiting approval from the Securities and Exchange Board of India (SEBI) for an open offer to the public shareholders to acquire up to 13.65 lakh fully paid-up equity shares representing a 26% voting share capital in the firm.

Tarun Sawhney, vice chairman and managing director of Triveni Engineering said the acquisition of the stake in SSEL will add value to its sugar and alcohol businesses. “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,” he said.

During the fourth quarter of the fiscal year 2024, Triveni Engineering and Industries saw its net profit decline by 15.4% year-on-year (YoY) to ₹161 crore. The consolidated revenue from operations during the quarter declined by 14.9% YoY to ₹1,548 crore. The company’s earnings before interest, tax, depreciation, and amortisation (EBITDA) fell by 8.3% YoY to ₹261.2 crore. However, the EBITDA margin expanded to 20.1% from 18% in the corresponding period last year.

In FY24, the company’s net profit slumped 77.9% YoY to ₹395.2 crore while revenue from operations was lower by 2.5% YoY at ₹6,151 crore. EBITDA declined 1.1% YoY to ₹688.4 crore while the EBITDA margin expanded to 13.2% compared to 12.4% last year.

Shares of the company have risen by nearly 19% since the beginning of the year. The stock has gained over 43% in the last one year.