Triveni Engineering & Industries acquired 36.34% stake in Sri Shadi Lal Enterprises

Triveni Engineering & Industries acquired 36.34% stake in Sri Shadi Lal Enterprises

Triveni Engineering & Industries Ltd (TEIL), one of the country’s largest integrated sugar producers, a leader in engineered-to-order high-speed gears and gearboxes, and a water and wastewater management company, announced today that it has acquired an additional 36.34 percent stake in Sri Shadi Lal Enterprises Limited (SSEL).

According to a share purchase agreement signed with Mr Rajat Lal / Mr Rahul Lal / Ms Poonam Lal (Second Promoter Group) on June 20, 2024, the company acquired 36.34 percent for an aggregate consideration of ₹44.83 crore, at a price of ₹ 235 per equity share of SSEL.

Following the transaction, Triveni’s stake in SSEL increased to 61.77 percent, and SSEL became a subsidiary of the company.  Triveni is currently awaiting SEBI approval for an open offer to acquire up to 26 percent of Sir Shadi Lal Enterprises’ voting share capital from its shareholders.

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Mr Tarun Sawhney, vice chairman and managing director, commented on the transaction, saying, “The acquisition of a stake in Sir Shadi Lal Enterprises is a strategic milestone for Triveni Engineering and Industries Limited.” This will increase the value of Triveni’s sugar and alcohol businesses while also solidifying the company’s position as one of the largest integrated sugar and alcohol producers in the country.

Given SSEL’s proximity to two of our largest sugar units, we believe this transaction will result in operational and logistical synergies and increased efficiencies for both companies and key stakeholders, including the farmer community.

Cyril Amarchand Mangaldas (CAM) serves as the company’s legal advisor, while Ambit Private Limited manages the open offer.TEIL currently operates seven sugar mills: Khatauli, Deoband, Sabitgarh (all in western Uttar Pradesh), Chandanpur, Rani Nangal, and Milak Narayanpur (all in central Uttar Pradesh), and Ramkola (in eastern Uttar Pradesh). The Company has state-of-the-art distilleries spread across Muzaffarnagar (MZN) – two facilities, Sabitgarh (SBT), Milak Narayanpur (MNP), and the recently commissioned Rani Nangal (RNG) in Uttar Pradesh, totaling 860 KLPD.