Sharvaya Metals544506Acquisition deal news

Board approves 8,11,000 warrants and 21,00,000 swap shares for acquisition of Success Electronics

Board meeting outcome (Oct 14, 2026).

By ScoutQuest · Wed 14 Oct 2026, 3:13 PM IST · 3 min read

Warrant Issue: Up to 8,11,000 fully convertible warrants at INR 144/- each, aggregating INR 11.68 crore
Swap Share Issue: Up to 21,00,000 fully paid-up equity shares (Swap Shares) aggregating INR 30.24 crore
Target Financials: Turnover of INR 4.48 Crores and net profit of INR 88.61 lacs for the half year ended September 30, 2026

What the board approved

Increase in the Authorised Share Capital of the Company and a consequent amendment to the Memorandum of Association, subject to approval of the shareholders.
Issue of up to 8,11,000 Fully Convertible Warrants at an issue price of INR 144/- per warrant, for cash, aggregating INR 11.68 crore, on a preferential basis.
Issue of up to 21,00,000 fully paid-up equity shares (Swap Shares), aggregating INR 30.24 crore, for consideration other than cash, on a preferential basis on a private placement basis.
Convening of the Extraordinary General Meeting and the cut-off date for e-voting, along with a scrutinizer and a remote e-voting agency.

The acquisition, in simple words

The Company approved the acquisition of the entire share capital of Success Electronics Private Limited through a share swap. It has agreed to acquire up to 2,00,000 equity shares of Success from its shareholders, being the entire paid-up share capital of Success, and will issue up to 21,00,000 of its own equity shares as consideration, aggregating up to INR 30.24 crore. After the acquisition, Success is proposed to become a wholly owned subsidiary of the Company.

Sellers and the related party angle

The Swap Shares are proposed to be allotted to sellers belonging to the promoter category of the Company. The acquisition would fall within a related party transaction. Mr. Shreyans Ravindra Katariya, a Director and Promoter of the Company, is a Director and shareholder in Success, and Mr. Balasaheb Jalinder Kale, a Director of the Company, is also a Director in Success. The transaction is stated to be at fair value based on valuation reports and on an arm's length basis.

What is being acquired

Success 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, and also supplies components to the broader automotive industry. It was incorporated on July 18, 2016 and has a presence in India.

Success reported turnover of INR 4.48 Crores and net profit of INR 88.61 lacs for the half year ended September 30, 2026.

Why the Company says it is doing this

Strengthen the electric vehicle component business by combining the Company's battery housing and precision machining operations with Success's aluminium die-cast components.
Build an integrated aluminium manufacturing ecosystem covering alloy manufacturing, extrusion, die casting, die and mould manufacturing, precision machining and finishing.
Add high-pressure die casting capability, and a proposed automated powder coating facility at Success.
Widen the customer base across defence, aviation, automotive, electric vehicles and other engineering sectors.
Keep cash free for operations, since the consideration is shares and not cash, though the arrangement will increase the equity share capital.

Approvals and completion

Apart from the shareholders and the stock exchanges, no other government or regulatory approval is required for the acquisition.
The acquisition and allotment of Swap Shares are to be completed after shareholder approval or stock exchange approval, whichever is later.
The board took note of the valuation report on Success and approved the draft valuation report received from the registered valuer for the Company's proposed preferential issue.

What a retail investor may track

Both the warrants and the Swap Shares are subject to shareholder and regulatory approvals.
The warrants are for cash, and each warrant carries a right to subscribe to an equity share of the Company.
The Swap Shares are issued for consideration other than cash, and the structure is expected to result in an increase in equity share capital.
The actual financial and operational benefits, the update notes, will depend on successful integration, capacity utilisation, implementation of the proposed expansion plans, customer demand and prevailing market conditions.

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