Synopsis:
Foseco India Ltd. has announced that its Board of Directors, at the meeting held on 22 August 2025, approved the acquisition of a 75% equity stake in Morganite Crucible (India) Ltd (MCIL) through a share-swap deal valued at approximately Rs. 653.94 crore.
This company is engaged in the manufacture of products used in the metallurgical industry, which are in the nature of additives and consumables that improve the physical properties and performance of castings is in focus after announcing that they will acquire a 75% stake in Morganite Crucible.
With market capitalization of Rs. 4,062 cr, the shares of Foseco India Ltd are currently valued at Rs. 6,469 apiece, surging 19% in today’s market session making a high of Rs. 6,680 from its previous close of Rs. 5,611 apiece.
News
Foseco India Limited, at its Board Meeting held on August 22, 2025, approved a series of major strategic decisions including the acquisition of a controlling stake in Morganite Crucible (India) Limited (MCIL). The company will acquire 42,00,000 equity shares representing 75% of MCIL at Rs. 1,557 per share for a total consideration of Rs. 653.94 crore, to be settled through a share swap arrangement by issuing 11,50,800 equity shares of Foseco at Rs. 5,674 each on a preferential basis to the MCIL promoters.
This transaction, expected to be completed by October 15, 2025, will also trigger a mandatory open offer under SEBI Takeover Regulations, wherein Foseco along with its promoters will acquire up to 14,00,000 equity shares (25% of MCIL) from public shareholders at Rs. 1,557.15 per share, amounting to a maximum outlay of Rs. 218 crore. To facilitate the allotment, the Board has approved an increase in authorized share capital from Rs. 7.5 crore to Rs. 9 crore along with consequential amendments to its Memorandum of Association.
About the company
Foseco India Ltd. is a leading Indian company in the foundry and metallurgical solutions sector, specializing in products and technologies for metal casting, molding, and molten metal handling. Part of the global Vesuvius Group, the company provides crucibles, consumables, and process solutions to ferrous and non-ferrous industries, serving sectors like automotive, aerospace, and industrial engineering. With a focus on innovation and quality, Foseco India plays a key role in improving efficiency and productivity in foundry operations.
Foseco India Ltd. reported strong YoY growth for Q1FY26, with sales rising 26% to Rs. 157 crore compared to Rs. 125 crore in Q1FY25. EBIDT increased 15% to Rs. 27.2 crore, up from Rs. 23.5 crore a year ago, while net profit grew 16% to Rs. 21.5 crore versus Rs. 18.5 crore in the same period last year. Reflecting this performance, EPS improved 16%, reaching Rs. 33.71 compared to Rs. 28.97 in June 2024.
Written by Manideep Appana
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
