Shriram Pistons & Rings to acquire TGPEL Precision Engineering for ₹220 crore via subsidiary – CNBC TV18
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The acquisition will be done through SPRL’s wholly-owned subsidiary, SPR Engenious Ltd (SEL), at an enterprise value of ₹220 crore on a debt-free, cash-free basis.
TGPEL specialises in manufacturing high-precision injection moulds and moulded components, serving the automotive, electrical, consumer goods, and medical sectors in India and internationally.
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This acquisition aligns with SPRL’s long-term strategy of diversifying its product portfolio beyond internal combustion engine (ICE) powertrains and strengthening its foothold in high-precision component manufacturing.
The transaction is expected to conclude by the end of December 2024, with adjustments to the enterprise value, if any, to be finalised as per the Share Purchase Agreement.
Established in 2008, TGPEL has two state-of-the-art two manufacturing facilities in Noida. TGPEL has been growing consistently yearly in diverse industries, and its healthy financial parameters are expected to be value accretive to SPRL’s overall consolidated financials.
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TGPEL primarily supplies injection moulded products and moulds to original equipment manufacturers (OEMs) and other automotive companies.
Krishnakumar Srinivasan, MD and CEO of SPRL, said, “With this strategic investment, SPRL aims to consolidate its product portfolio beyond the current pistons, rings, engine valves, Electric powertrain and precision plastic injection moulded parts.
“With its state-of-the-art mould development facility and set up for manufacturing of high precision injection moulded parts, TGPEL will be able to service the domestic and global customers requiring precision moulded parts for automotive & other industrial applications.”
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Shares of Shriram Pistons & Rings Ltd ended at ₹2,250.00, up by ₹66.35, or 3.04% on the NSE.
