On February 22, 2025, Maithan Alloys Limited disclosed its acquisition of shares of Power Finance Corporation Ltd (PFCL), a leading non-banking financial institution in India, through the stock exchange. This move was in line with the company's strategy to make long-term investments and strengthen its financial portfolio.

Acquisition Details

The acquisition triggered a threshold limit under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, necessitating the disclosure. Maithan Alloys became aware of the detailed particulars regarding this acquisition on February 22, 2025, at 9:33 AM, following the event occurrence on February 21, 2025, at 3:30 PM. The shares were acquired as part of a strategic investment aimed at benefiting from long-term growth potential in the energy sector.

Financial Information about Power Finance Corporation Ltd

Power Finance Corporation Ltd, headquartered in India, is a key player in the financial sector, particularly in energy financing. As of March 31, 2024, PFCL has reported a turnover of Rs. 46,022 crore, net worth of Rs. 7,920.03 crore, and a profit after tax (PAT) of Rs. 14,367 crore. The company is under the administrative control of the Ministry of Power, and its focus lies on supporting infrastructure development and financing the energy sector, playing a crucial role in India’s power development initiatives.

Nature of the Acquisition

This acquisition does not involve any related-party transactions, and Maithan Alloys clarified that there is no connection between its promoters and Power Finance Corporation Ltd. The acquisition was done at arm's length, and Maithan Alloys does not seek to gain control over PFCL, but rather to benefit from the long-term investment potential in the energy financing sector.

The shares were purchased through the stock exchange, and the acquisition aims to further diversify Maithan Alloys' investment portfolio with strategic holdings in a key infrastructure finance entity.

Impact of the Acquisition

The acquisition aligns with Maithan Alloys' broader strategy to expand its presence in financial markets and leverage opportunities in energy sector financing. By investing in Power Finance Corporation Ltd, Maithan Alloys aims to enhance its long-term financial performance and strengthen its role in supporting India's energy infrastructure.

Timeline and Terms

The acquisition process was completed on February 22, 2025, and the exact cost of acquisition and shareholding percentage are outlined in the detailed disclosure. The acquisition was structured as a cash consideration and is a part of Maithan Alloys’ broader investment plans in the infrastructure and financial sectors.

This acquisition is in line with the company’s goal to secure a stable financial future and support India’s energy needs, which remain crucial for the country's economic development.

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