TMT India Ltd has finalized the 100% acquisition of Shakti Auto Industries for Rs 20.5 crore via a share swap. The company is pivoting its identity, proposing a name change to 'Shakti Auto Industries Limited' and moving its registered office to Maharashtra. Additionally, TMT India is raising Rs 72.17 crore through a preferential cash share issuance to fuel growth. This strategic restructuring aims to consolidate its position in the automotive supply segment.
TMT India Announces Strategic Acquisition and Corporate Restructuring
100% equity stake in Shakti Auto Industries Private Limited acquired for Rs 20.50 crore via share swap.
Rs 72.17 crore to be raised through preferential cash issuance of 7,21,65,000 equity shares.
Reader Takeaway: Acquisition of a high-turnover auto component firm and name change signals a strong pivot toward automotive manufacturing.
What just happened
TMT India Ltd has issued a revised board outcome confirming the 100% acquisition of Pune-based Shakti Auto Industries Private Limited (SAIPL). The deal is structured as a share swap valued at Rs 20.50 crore. To support this, the board has cleared a preferential issue of 2.05 crore shares to SAIPL shareholders and a separate cash-based preferential issue to raise Rs 72.17 crore. The company is also seeking to rename itself 'Shakti Auto Industries Limited' and shift its registered office from Telangana to Maharashtra.
Why this matters
This move marks a significant shift for TMT India as it moves away from its legacy operations to focus on the automotive supply chain. SAIPL brings a manufacturing capacity of 60,000 metric tons of aluminium alloys and recorded a FY26 turnover of Rs 545.51 crore. The increase in authorized capital to Rs 100 crore and the hike in borrowing limits to Rs 500 crore provide the company with the balance sheet flexibility required for large-scale operations in the automotive sector.
Risks to watch
Investors should consider the execution risk involved in integrating a large unit with a turnover significantly higher than the parent entity. Furthermore, the name change, office relocation, and preferential issues are subject to regulatory and shareholder approvals at the upcoming Extraordinary General Meeting (EGM). Any delay in these approvals could stall the strategic transition.
What to track next
Watch for the upcoming EGM date and details on the allotment process for the preferential shares. The integration of SAIPL's operations and the formal transition to the new corporate name will be key milestones for shareholders.