M&A

M&A

Murugappa Group’s CG Power buys 55% in GG Tronics for Rs.319-Cr

Press Release   Business Line  

CG Power and Industrial Solutions, a publicly listed engineering firm that is part of the Chennai-headquartered Murugappa Group, would acquire a 55% stake in G G Tronics Pvt Ltd , a Bengaluru-based company specialising in the design, manufacture, supply and installation of electronic safety embedded signalling systems for the railway transportation segment. This all-cash deal is valued at INR 319.38 crore.G G Tronics had reported a turnover of INR 105.43 crore and a profit before tax of INR 10.84 crore for FY24. The company’s net worth stood at INR 55.04 crore.CG Power will acquire the 55% stake in G G Tronics through a combination of purchasing equity shares from the promoters and subscribing to compulsorily-convertible preference shares. Specifically, the deal involves purchasing 1,45,622 equity shares from GGT’s founders, representing 40% of the share capital, for INR 173 crore, and subscribing to 1,46,37,704 compulsorily-convertible preference shares issued by GGT for INR 146.38 crore.