Jayant Infratech Moves to Fully Own Jayant Infraprojects

Jayant Infratech Limited is set to acquire the remaining 70% of Jayant Infraprojects for ₹8.79 crore. The company announced this move following a board meeting, planning to issue 12,55,000 new equity shares at ₹70 each to fund the purchase.

The Deal Details

The board of Jayant Infratech approved a Business Transfer Agreement and a preferential share issue on April 27, 2026. This plan will see the company buy the rest of Jayant Infraprojects, an Association of Persons (AOP), for ₹8.79 crore. Jayant Infratech currently holds a 30% stake and will consolidate full ownership. The acquired entity reported a turnover of ₹1.21 crore for the financial year ending March 31, 2025.

Shareholders will vote on the deal at an Extraordinary General Meeting (EGM) scheduled for May 27, 2026.

Strategic Rationale

This acquisition is designed to boost Jayant Infratech's operational capabilities and support its long-term growth. By fully owning Jayant Infraprojects, the company aims to streamline operations and unlock potential synergies within the infrastructure and railway electrification sectors.

Company Background

Jayant Infratech, established in 2003, is a significant player in India's railway infrastructure. The company specializes in electrification projects and successfully completed an SME IPO in July 2022, raising ₹6.19 crore. It has recently secured major contracts, including ₹40.55 crore for overhead electrification and ₹186.44 crore for the Bhusawal division from Central Railway. To support its expansion, Jayant Infratech also raised approximately ₹58.6 crore through a private placement of warrants in November 2023.

Key Considerations and Next Steps

Shareholder approval at the upcoming EGM, along with an in-principle approval from stock exchanges, are critical hurdles before the deal can close. The transaction is expected to bring Jayant Infraprojects fully under Jayant Infratech's operational control, enabling better integration. This deal also provides a pathway to fund growth through equity rather than debt. The company aims to complete the transaction within 12 months of the Business Transfer Agreement date.

Peer Landscape

Jayant Infratech operates in the specialized field of railway electrification. Its broader competitors in the infrastructure and construction sectors include large conglomerates like Larsen & Toubro Ltd (L&T). Key players directly in railway infrastructure are government-backed entities such as Rail Vikas Nigam Ltd (RVNL) and IRCON International Ltd, focused on rail asset development. Other companies like NCC Ltd are involved in general civil engineering and construction.