On July 3, 2025, Maithan Alloys Limited submitted a regulatory filing under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, disclosing the acquisition of 0.01% equity stake in GAIL (India) Limited, a Maharatna public sector undertaking, for an investment value of ₹10.55 crore.

This acquisition was carried out via open market transactions through the stock exchange on July 2, 2025, at 3:30 PM, and the company became fully aware of the details on July 3, 2025, at 9:59 AM, leading to the required SEBI disclosure.

The share purchase does not constitute a related party transaction, and there is no promoter or promoter group interest involved in the entity being acquired.

Strategic Intent Behind the Acquisition

According to Maithan Alloys, this transaction is purely part of its treasury investment strategy aimed at deriving long-term or short-term returns. The company does not intend to acquire control or influence over GAIL, either directly or indirectly. It is a passive financial investment in a blue-chip PSU.

This move reflects Maithan’s approach of diversifying its financial portfolio by investing in well-established, profitable entities like GAIL.

About GAIL (India) Limited

GAIL (India) Limited, established in 1984, is India’s largest natural gas transmission and marketing company. It is a public limited company, headquartered in New Delhi, and operates under the Ministry of Petroleum and Natural Gas.

GAIL has a diversified portfolio, which includes:

• Natural gas trading and transmission

• Petrochemical production

• LPG transmission

• Exploration & Production (E&P) in oil and gas blocks (domestic and overseas)

• Operations in India and international locations such as Singapore, the US (Louisiana), Myanmar, among others

Key Financials of GAIL (India) Ltd as on March 31, 2025:

• Turnover: ₹1,37,288 crore

• Profit After Tax (PAT): ₹11,312 crore

• Net Worth: ₹63,241 crore

Turnover history over last 3 years:

• FY 2024-25: ₹1,37,288 crore

• FY 2023-24: ₹1,30,638 crore

• FY 2022-23: ₹1,41,302 crore

The information was sourced from GAIL’s official financial results and BSE filings, ensuring transparency and data reliability.

Acquisition Details at a Glance:

Regulatory Compliance and Threshold Trigger

The disclosure was made as the materiality threshold under Regulation 30 of the SEBI LODR was triggered due to the value of the investment exceeding significance thresholds, even though the percentage stake is minimal.

In line with SEBI Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated 11th November 2024, companies are mandated to disclose significant events, even for minor shareholding transactions, if the investment value crosses materiality limits set by their Board or SEBI regulations.

Maithan Alloys has confirmed that:

• No regulatory or government approval was required for this transaction

• The acquisition was made at arms-length pricing

• There is no intent to influence GAIL’s management

Maithan’s Strategy of Conservative Investments

Maithan Alloys, primarily involved in ferro alloys manufacturing, appears to be deploying its surplus capital into safe, high-return public sector stocks like GAIL to enhance shareholder value. This approach suggests a balanced capital allocation strategy that focuses on core operations while leveraging capital market instruments for supplemental income.

GAIL, being a consistent dividend-paying PSU, fits well into such a conservative investment approach, offering liquidity, safety, and stable returns.

Conclusion

Maithan Alloys’ acquisition of a 0.01% stake in GAIL (India) Ltd for ₹10.55 crore is a non-controlling, investment-focused decision aimed at maximizing financial returns from surplus funds. While the acquired shareholding is minor, the disclosure reflects Maithan’s commitment to regulatory transparency and investor communication.

This move further highlights a growing trend among manufacturing companies to invest in blue-chip stocks to optimize idle capital. Maithan Alloys’ stakeholders can view this as a strategic deployment of funds rather than an operational expansion.

Market watchers will now be keen to see whether this signals more PSU equity investments in Maithan’s treasury strategy in the near future.

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