TMT India Ltd is set for a massive transformation following the 100% acquisition of Shakti Auto Industries Private Limited. The company plans to rebrand as 'Shakti Auto Industries Limited,' shift its registered office to Maharashtra, and raise capital through a combined preferential issue of over 9.26 crore shares. The board has also proposed increasing the authorized capital to Rs 100 crore and expanding borrowing limits to Rs 500 crore, signaling a major push for operational growth and market expansion.
TMT India Announces Strategic Acquisition and Corporate Overhaul
Acquisition of 100% stake in Shakti Auto Industries; Preferential issue of 9.26 crore equity shares.
Reader Takeaway: Expansion via acquisition and capital infusion, but watch for significant equity dilution from new share issuance.
What just happened
Following its board meeting on September 5, 2026, TMT India Ltd has initiated a fundamental business restructuring. The company will acquire 100% of the equity share capital of Shakti Auto Industries Private Limited (SAIPL), an aluminium alloy recycling firm with a FY 2025-26 turnover of Rs 545.51 crore. To facilitate this, the company will rebrand as 'Shakti Auto Industries Limited' and move its registered office from Telangana to Maharashtra.
Capital and Borrowing Plans
To support this growth, the company approved a dual-path preferential issue of equity shares at Rs 10 each:
- A share swap issuing 2,05,00,000 shares to the sellers of SAIPL.
- A cash issue of 7,21,65,000 shares to promoter and non-promoter groups to raise Rs 72.16 crore.
Additionally, the board plans to increase its authorized share capital from Rs 10 crore to Rs 100 crore and expand its borrowing limits to Rs 500 crore.
What changes now
These structural shifts fundamentally alter the company’s identity and financial base. The transition from TMT India to Shakti Auto Industries Limited signals a pivot toward the recycling and auto-ancillary sector. The company will seek shareholder approval for these resolutions at its 49th Annual General Meeting on September 30, 2026.
Risks to watch
Investors should monitor the impact of the substantial equity dilution on earnings per share (EPS). The increase in borrowing capacity to Rs 500 crore also adds leverage risks that need to be balanced against the operational synergies gained from the acquisition.
What to track next
The primary event to watch is the 49th AGM on September 30, where the special resolutions for these changes will be put to a vote. Post-meeting, the focus shifts to the integration of SAIPL's operations and the execution of the capital raising plan.