SMSharvaya Metals544506Acquisition deal news

Board approves 100% acquisition of Success Electronics via share swap, warrant issue; EGM convened

Increase in authorised share capital and amendment to the Memorandum of Association.

By ScoutQuest · Wed 14 Oct 2026, 2:31 PM IST · 2 min read

Acquisition Consideration

for INR 30.24 crore, paid through up to 21,00,000 equity shares at INR 144 each

Warrant Issue

Up to 8,11,000 fully convertible warrants at INR 144/- each, aggregating INR 11.68 crore

Target Financials

FY 2025-26 revenue of ₹10.36 crore and profit after tax of ₹1.01 crore

Board meeting outcome

The board met on 14 October 2026 and approved, subject to shareholder and regulatory approvals, the acquisition of Success Electronics Private Limited, an increase in the company's authorised share capital together with an amendment to the Memorandum of Association, and a preferential issue of equity shares and warrants.

The acquisition

• The company approved the acquisition of 100% of Success Electronics Private Limited, a manufacturer of aluminium high-pressure die-cast (HPDC) components, including components required for electric vehicles and other automotive applications.
• Total consideration for the acquisition is INR 30.24 crore, and it is not a cash deal.
• The consideration is met by issuing equity shares of the company on a preferential basis to the sellers, who belong to the promoter category.
• Up to 21,00,000 fully paid-up equity shares are to be issued at INR 144 per equity share, aggregating to INR 30.24 crore.
• The company states the transaction is at arm's length, supported by valuation reports from registered valuers, and that Success will become a wholly owned subsidiary whose results will be consolidated with those of the company.

The warrant issue

• Up to 8,11,000 fully convertible warrants are proposed to be created, offered, issued and allotted on a preferential basis.
• Issue price: INR 144/- per warrant, aggregating to INR 11.68 crore.
• The warrants and the swap shares both require shareholder and regulatory approvals.

About the business being acquired

• Success Electronics manufactures aluminium high-pressure die-cast components and has experience in supplying components to the broader automotive industry.
• For FY 2025-26 it reported revenue of ₹10.36 crore and a profit after tax of ₹1.01 crore.
• The company expects the acquisition to add an established, revenue-generating die-casting business with manufacturing infrastructure, technical expertise and commercial operations, complementing its own aluminium alloy manufacturing, extrusion, tooling and precision machining facilities.

Stated objectives of the acquisition

• Strengthening the electric vehicle component business by combining the company's EV battery housing and precision machining operations with Success's die-casting and supply capabilities.
• Creating an integrated aluminium manufacturing platform spanning alloy manufacturing, extrusion, die casting, die and mould manufacturing, precision machining and finishing.
• Diversifying into high-pressure die casting and moving into higher value-added, precision-engineered aluminium components.
• Expanding the customer base and product range across defence, aviation, automotive, electric vehicle and other engineering sectors.
• The company also notes that actual financial and operational benefits will depend on successful integration, capacity utilisation, implementation of expansion plans, customer demand and prevailing market conditions.

What happens next

• An extraordinary general meeting (1/2026-2027) has been convened, and a scrutinizer and a remote e-voting agency have been appointed for the e-voting process.
• A preferential issue committee has been constituted to deal with matters relating to the preferential issue.
• As the acquisition is a related party transaction and the proposals require shareholder approval, the matters will be placed before shareholders.

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