During Monday’s trading session, the shares of a leading manufacturer of high-quality engineering metal components surged 4.8 percent to Rs. 13,594 on BSE, after the company signed an agreement to acquire a 100 percent stake in a UK-based company.
With a market cap of Rs. 19,515.3 crores, at 10:31 am., the shares of PTC Industries Limited were trading in the green at Rs. 13,035.25, up by nearly 0.6 percent, compared to its previous closing price of Rs. 12,964.35.
What’s the news:
PTC Industries Limited entered into a Share Purchase Agreement (SPA) to acquire complete ownership of Trac Precision Solutions Limited (TSPL), a private UK-based company.
The agreement was finalised with Rcapital Limited and individuals Liam Marc Bevington, Kevin Andrew Mooney, and Paul Brian Young on 18th October, for the acquisition of Trac Precision Solutions.
Under the terms of the SPA, TSPL will be acquired by purchasing 100 percent of its parent company, Trac Holdings Limited (THL).
Recent regulatory filings with stock exchanges indicate that four companies are part of this acquisition, with three of them—Trac Holdings Limited, Broomco (4266) Limited, and Trac Group Limited—being non-operating entities; TSPL is the only operating company.
Once the acquisition is finalised, Trac Holdings Limited will become a wholly owned subsidiary of PTC Industries, while Broomco, Trac Group Limited, and TSPL will be categorised as step-down wholly owned subsidiaries. Additionally, TSPL will be recognized as a material subsidiary of the company.
This transaction awaits approval from UK authorities under the National Security and Investment Act 2021 and is anticipated to be completed in cash within three months.
About the Target Entities:
Trac Holdings Limited, previously known as RCap Eleven Limited, is a non-operating private company registered in the UK in 2022. It owns 100 percent of Broomco (4266) Limited and serves as the ultimate parent company of TSPL.
Broomco (4266) Limited, established in 2013, is also a non-operating private company registered in the UK and holds 100 percent of Trac Group Limited.
Trac Group Limited, which was formerly Trac Aerospace Limited, is a non-operating private company registered in the UK since 2002 and owns 100 percent shares of TSPL.
Trac Precision Solutions Limited (TSPL), previously known as Trac Precision Machining Limited, is an operating private company established in the UK in 2003.
TSPL specialises in designing and manufacturing precision-engineered components for the aviation, defence, and power generation sectors, maintaining a presence in the United Kingdom.
Previous News:
On 5th September, Aerolloy Technologies Limited, a wholly-owned subsidiary of PTC Industries, secured an order from Israel Aerospace Industries (IAI) for the supply of titanium cast components for aerospace applications. This marks the first time that IAI is procuring such cast components from India.
On 27th September, PTC Industries Limited announced receiving a major production order from global defence and aerospace solutions provider BAE Systems.
The order was for the supply titanium castings for the M777 Ultra-Lightweight Howitzer (ULH), including spade trails and blades.
Financials:
The company experienced a decline in its revenue from operations, showing a year-on-year decrease of around 34.5 percent from Rs. 71.5 crores in Q1 FY24 to Rs. 46.8 crores in Q1 FY25.
Similarly, its net profit decreased during the same period from Rs. 11.3 crores to Rs. 5 crores, representing a decline of nearly 55.8 percent YoY.
On a year-on-year basis, the consolidated EBITDA decreased from Rs. 22.7 crores in Q1 FY24 to Rs. 13.7 crores in Q1 FY25, indicating a decline of around 40 percent YoY.
Shareholding Pattern:
As per the September 2024 shareholding pattern, the Promoters hold a 59.81 percent stake in the company, Foreign Institutional Investors (FII) hold a 4.53 percent stake, while Retail Investors and Domestic Institutional Investors (DII) hold a 31.02 percent and 4.64 percent stake in PTC Industries, respectively.
As of September 2024 shareholding pattern data available with the BSE, the ace investor Mukul Mahavir Agrawal holds a 1.07 percent stake in the company.
Stock Performance
The stock has delivered multibagger returns of nearly 166.3 percent in one year, while around 66.8 percent of positive returns in the last six months. So far in 2024, the shares of PTC Industries have given about 94.3 percent of positive returns.
About the company:
PTC Industries Limited is a leading manufacturer of metal components for critical and super-critical applications. The company exports over 75 percent of its products to various countries worldwide to renowned customers like Rolls Royce, Siemens, GE, Alstom, Metso, and Emerson, amongst others.
Written by Shivani Singh
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