Sharvaya Metals544506Acquisition deal news

Board approves INR 11.68 crore warrant issue and INR 30.24 crore share swap for Success Electronics

Sharvaya Metals board, 14 October 2026, approves fund-raising and an acquisition, subject to shareholder and regulatory approvals.

By ScoutQuest · Wed 14 Oct 2026, 3:00 PM IST · 3 min read

100%Shareholding of Success Electronics to be acquired

Shareholding of Success Electronics to be acquired: 100%.

Warrant Issue: 8,11,000 fully convertible warrants at INR 144/- each = INR 11.68 crore
Share Swap Consideration: 21,00,000 equity shares at INR 144 each = INR 30.24 crore
Target Turnover: INR 4.48 Crores for the half year as on September 30, 2026

Sharvaya Metals approved two connected proposals at its board meeting on 14 October 2026: a preferential issue of convertible warrants for cash, and a preferential issue of equity shares that will be used to pay for an acquisition. Both are approved subject to shareholders and regulatory authorities.

The two proposals

Up to 8,11,000 fully convertible warrants, on a preferential basis, for cash, at an issue price of INR 144/- per warrant, aggregating to INR 11.68 crore. Each warrant carries a right to subscribe to equity shares of the company.
Up to 21,00,000 fully paid-up equity shares at INR 144 per share, aggregating to INR 30.24 crore, on a preferential basis on a private placement basis, issued to sellers for consideration other than cash, that is, a share swap.

The board also approved an increase in the authorised share capital of the company and a consequent amendment to Clause V/5 of its Memorandum of Association, subject to approval of the shareholders.

What the swap buys

The equity shares are the consideration for the company agreeing to acquire 100% of the share capital of Success Electronics Private Limited through a share swap. The update says that after the acquisition, Success is to become a wholly owned subsidiary of the company. Success Electronics is described as an established manufacturer of aluminium high-pressure die-cast components, with existing manufacturing facilities, currently engaged in manufacturing and supplying aluminium casting components required for electric vehicles and other automotive components. The update discloses a turnover of Success of INR 4.48 Crores for the half year as on September 30, 2026.

Related party transaction

The update states that the acquisition falls 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, is also a director in Success. The update says the transaction is done at fair value based on the valuation reports and is on an arm's length basis. The list of allottees of the swap shares includes individuals in the promoter, promoter group and public categories.

What must happen before the issues

The proposals are approved subject to shareholders and regulatory authorities. The board approved convening the Extraordinary General Meeting, the appointment of a scrutinizer and a remote e-voting agency, the relevant date for the preferential issue as Wednesday, October 07, 2026, and the constitution of a Preferential Issue Committee for the preferential issue. The board also ratified the appointment of the Registered Valuer for the company's shares, approved the draft valuation report, and took note of the valuation report on Success Electronics.

Why the company says it is doing this

The stated object is to expand manufacturing by acquiring an established aluminium high-pressure die casting business and integrating it with the company's own operations. The update lists these objectives:

Strengthen the electric vehicle component business by combining the company's EV battery housing and precision machining operations with Success's die-cast components.
Build an integrated aluminium manufacturing platform covering alloy manufacturing, extrusion, die casting, die and mould manufacturing, precision machining and finishing.
Diversify into high-pressure die casting and add larger, more complex and higher-value aluminium components.
Expand the customer base and product portfolio in defence, aviation, automotive, electric vehicles and other engineering sectors.

What the company says about the impact

The acquisition is expected to positively affect manufacturing capabilities, production capacity, product diversification and operational efficiency.
The share swap is expected to preserve cash resources for operational requirements and future expansion, while resulting in an increase in equity share capital.
The update states that the actual financial and operational benefits will depend upon successful integration, capacity utilisation, implementation of the proposed expansion plans, customer demand and prevailing market conditions.

In short

The board has approved a cash-raising warrant issue and a share-swap acquisition of a die-casting business. Both still require shareholder approval and other approvals before the securities are issued.

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