In an important development, Garg Furnace Limited has completed the acquisition of a 51.22% stake in Vaneera Industries Private Limited, effectively making it a subsidiary of the company. This acquisition, which was finalized on February 11, 2025, strengthens Garg Furnace's footprint in the steel industry and enhances its business operations.

This transaction follows the intimation provided by Garg Furnace Limited on September 7, 2024, and adheres to the guidelines of the Securities and Exchange Board of India (SEBI), under Regulation 30 of SEBI (LODR) Regulations, 2015. The full details of the transaction, including the financial specifics and regulatory requirements, are outlined in the official notice submitted to the BSE Limited.

Key Details of the Acquisition:

1. Vaneera Industries Overview:
   Vaneera Industries Private Limited, based in Ludhiana, Punjab, is engaged in the production of ferrous and non-ferrous metal castings, including steel, copper, brass, and aluminum castings. The company also operates in rolling and re-rolling mills for various metals and engages in the import, export, and distribution of steel products and raw materials such as iron scrap. As per the audited financial statement for FY 2023-24, Vaneera Industries reported a revenue of ₹741.08 crores.

2. Consideration Details:
   The acquisition involved the purchase of 58,50,000 equity shares of Vaneera Industries, constituting 51.22% of its total share capital. The shares were acquired at a price of ₹62 per share, with ₹52 being the premium amount. The total consideration paid amounts to ₹3,62,70,000 for 10% of the shares, with the remaining balance to be settled in calls as per the terms outlined in the Private Placement Offer.

3. Related Party Transactions:
   Given the common promoters and directors of both Garg Furnace Limited and Vaneera Industries, this acquisition qualifies as a related party transaction. However, it has been executed on an arm’s length basis, ensuring compliance with SEBI regulations and maintaining transparency in the transaction.

4. Business Impact:
   The acquisition of Vaneera Industries is a strategic move for Garg Furnace Limited aimed at expanding its market operations and achieving better synergy with Vaneera's existing business in the metal casting and steel production sectors. This acquisition supports Garg Furnace in its ongoing expansion plans and boosts its market position in the steel industry.

5. Company Background:
   Vaneera Industries was established on May 2, 2011, and operates in the foundry and furnace manufacturing sector. Over the past three years, the company has shown strong financial performance, with a turnover of ₹241.08 crores in FY 2023-24. The acquisition marks a significant milestone in Garg Furnace Limited's growth strategy and positions the company to leverage the increasing demand for quality steel products and metal castings in India.

This acquisition not only strengthens Garg Furnace Limited’s operations but also enhances its capacity to provide a broader range of products and services in the steel manufacturing and metal casting sectors.

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