Sharvaya Metals544506Preferential allotment

Board approves 8,11,000 convertible warrants and share-swap acquisition of Success Electronics

Board approved a fund raise and an acquisition on October 14, 2026, both subject to shareholder and regulatory approvals.

By ScoutQuest · Wed 14 Oct 2026, 2:50 PM IST · 3 min read

100%Stake acquired in Success Electronics

Stake acquired in Success Electronics: 100%.

Convertible Warrants Approved: Up to 8,11,000 fully convertible warrants at INR 144/- each, totalling INR 11.68 crore
Share-Swap Acquisition Consideration: Up to 21,00,000 shares worth INR 30.24 crore for 100% of Success Electronics
Target Company Turnover: INR 4.48 Crores for the half year ended September 30, 2026

What the board approved

The board of Sharvaya Metals Limited met on Wednesday, October 14, 2026 and approved, subject to shareholder and regulatory approvals, an increase in the company's authorised share capital with a consequent amendment to its Memorandum of Association, a cash preferential issue of convertible warrants, and a share-swap acquisition of Success Electronics Private Limited. The board also approved convening an Extraordinary General Meeting, the appointment of a scrutiniser and a remote e-voting agency, and the constitution of a Preferential Issue Committee for the preferential issue.

The warrant issue, for cash

Up to 8,11,000 fully convertible warrants, to be created, offered, issued and allotted in one or more tranches on a preferential basis, for cash.
Issue price: INR 144/- per warrant. Each warrant carries the right to subscribe to one equity share.
Conversion is permitted at any time within 18 months from the date of allotment.
Total issue size: INR 11.68 crore.

The share-swap acquisition

The company has agreed to acquire 100% of the paid-up share capital of Success Electronics Private Limited.
Consideration: up to 21,00,000 equity shares of the company, issued on a preferential basis on a private placement basis, for consideration other than cash, aggregating to INR 30.24 crore.
The sellers belong to the promoter category of the company, so this is a related party transaction.
The purchase consideration is the swap of shares under a Share Purchase and Swap Agreement between the company, Success and the shareholders of Success.

What Success Electronics does

Success Electronics is an established manufacturer of aluminium high-pressure die-cast (HPDC) components, with existing manufacturing facilities that include HPDC machines. It manufactures and supplies aluminium casting components required for electric vehicles and other automotive components. Its turnover for the half year ended September 30, 2026 was INR 4.48 Crores. On completion, Success is proposed to become a wholly owned subsidiary of the company.

Why the company says it is buying

Strengthening the electric vehicle component business by combining the company's EV battery housing and precision machining operations with Success's die-cast component manufacturing.
Creating an integrated aluminium manufacturing platform across alloy manufacturing, extrusion, die casting, die and mould manufacturing, precision machining and finishing.
Capacity expansion, including a proposed larger HPDC machine and an automated powder coating facility at Success.
Diversification into high-pressure die casting, operational synergies, a wider customer base and product portfolio, more value addition, and long-term growth.

The update states that the acquisition is expected to add to consolidated revenue and profitability and to preserve cash, while increasing equity share capital.

Points to note

The proposals are subject to the approval of the shareholders and of regulatory authorities. For the acquisition, the update states that apart from shareholder and stock exchange approvals, no other government or regulatory approval is required.
The acquisition and allotment of the swap shares are to be completed within the timeline set out in the update, counted from shareholder approval or stock exchange approval, whichever is later.
Because the swap shares are issued for consideration other than cash, the acquisition is funded by issuing new equity shares, which increases the company's equity share capital.
The acquisition falls within related party transactions: a director and promoter of the company is a director and shareholder in Success, and another director of the company is also a director in Success. The update states the transaction is done at fair value based on valuation reports and is on an arm's length basis.

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