The shares of an Engineering company that designs, develops, and manufactures pumps and pumping systems surged up to 8 percent after it announced that its subsidiary company is acquiring 55 percent stake in Paterson Candy International Pty Ltd. (PCI Africa).
Share Price Movement
The shares of WPIL Ltd, with a market capitalization of Rs 6,055.59 Crores, gained around 8 percent on Monday’s trade reaching an Intraday high of Rs 636 per share. As of 10:15 am, the shares were trading at Rs 629 per share, 7 percent higher than the previous close of Rs 588.6.
The shares generated a return of 89 percent in 1 year, 565 percent in 3 years, and 895 percent in 5 years respectively.
Acquisition details
As per a press release dated February 7, 2025, the South African subsidiary company of WPIL Ltd, WPIL SA has entered into a subscription agreement to acquire 55 percent shareholding of Paterson Candy International (SA) Pty Ltd. (PCI Africa) based in Johannesburg, South Africa.
As per the statement, the company informed that the transaction consideration would be paid in cash and is subject to regulatory approvals and is expected to be completed by first quarter FY26. The amount is not disclosed due to reasons of confidentiality and the sellers are not a related party.
Management Commentary
Prakash Agarwal, Managing Director, WPIL, stated “PCI Africa is the market leader in water and wastewater across Africa and WPIL is proud to be a part of its evolving legacy. PCI Africa would be a huge beneficiary of the recent South African Government initiative to enhance its water infrastructure especially in the Eastern and Western Cape regions.
This acquisition further strengthens and builds on WPIL’s focus on providing flow solutions especially in the highly prospective African continent along with sharing tremendous synergies with APE Pumps and their turnkey pumping business.”
Financials
The company reported an increase of 54% in Revenues from Rs 319 Crores in Q2FY24 to Rs 491 Crores in Q2FY25. Their Net Profits rose 63% from Rs 43 Crores to Rs 70 Crores over the same period.
Previous Acquisition
As per a press release dated January 7, 2025, WPIL Limited European subsidiary named Gruppo Aturia has acquired 100% shareholding of MISA Italy, based in Arzignano. This acquisition further strengthens Gruppo Aturia as a leading European supplier of large pumps and adds pumping station project capability enabling it to provide turnkey solutions to its markets.
About WPIL Ltd
WPIL Ltd is engaged in the business of Designing, Developing, Manufacturing, Erecting, Commissioning and Servicing of Pumps & Pumping Systems. It is a leading pump and pumping systems company in India that has expanded its operations globally and now has manufacturing operations in the United Kingdom , Italy, France, Switzerland, South Africa, Zambia, Australia and Thailand through its Group companies.
Written By Adhvaitha Nayani
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