Systematic Industries has announced the acquisition of 100% of Wire Brigade Industries for Rs 33.94 crore. The deal involves a share-swap and cash payment, funded via a preferential issue of 14.88 lakh shares at Rs 228 each. This move aims to consolidate operations and secure a manufacturing base in Howrah, West Bengal, to tap into Eastern Indian markets.
Systematic Industries to Acquire Wire Brigade in Rs 34 Crore Deal
Transaction Value: Rs 33.94 crore; Acquisition of 100% stake in Wire Brigade Industries Private Limited.
Reader Takeaway: Expansion into Eastern India via new facility, though investors should monitor equity dilution and related-party transaction terms.
What just happened
Systematic Industries has entered into an agreement to acquire 100% of Wire Brigade Industries Private Limited (WBIPL) from promoter group entity Veritas Industries. The deal is valued at Rs 33.94 crore and will be settled through a mix of a share swap and a nominal cash payment. Simultaneously, the company has approved a preferential issue of up to 14,88,600 equity shares at Rs 228 per share to 21 allottees to facilitate the transaction and bolster capital resources.
Why this matters
The acquisition grants Systematic Industries a strategic manufacturing facility located in Howrah, West Bengal. This is expected to provide the company with better access to the Eastern Indian market. By consolidating WBIPL under its umbrella, management expects to streamline governance and achieve operational synergies across its business segments.
What changes now
Shareholders will vote on the proposed preferential issue and acquisition at an Extraordinary General Meeting (EGM) scheduled for October 01, 2026. The cut-off date for voting eligibility is September 25, 2026. Post-acquisition, WBIPL will operate as a wholly-owned subsidiary of Systematic Industries.
Risks to watch
Investors should be mindful of the equity dilution resulting from the issuance of nearly 1.5 million new shares. Furthermore, as the seller is part of the promoter group, the transaction is categorized as a related-party deal, which requires careful oversight regarding valuation and terms to ensure minority shareholder interests are protected.
Context metrics
For FY 2025-26, the target entity, WBIPL, reported a provisional turnover of Rs 109.75 crore with a Profit After Tax (PAT) of Rs 2.14 crore and an EBITDA of Rs 5.93 crore.