PTC Industries Limited’s shares surged by over 4% on Monday, October 21, to ₹13,480, after the declaration of the company’s tactical procurement of Trac Precision Solutions Limited (TSPL), a UK-based enterprise that specialises in precisely engineered components for the aerospace, defence, and energy industries.
For the fiscal year that concluded on April 30, 2024, Trac Precision Solutions Limited, the main operating firm engaged, recorded a turnover of £24.76 million (about ₹250 crore). This represents a decline from the £29.52 million (about ₹298 crore) reported for the previous fiscal quarter.
On October 21, at 9:28 am, the share price of PTC Industries was up 4.09 per cent on the BSE, and it was trading in the green. The market capitalisation of the company is ₹20,173.60 crore. On July 10, 2024, PTC Industries’ stock price peaked on the NSE at ₹15,702.10.
On October 18, 2024, a Share Purchase Agreement (SPA) will be signed in order to carry out the acquisition. PTC Industries, Trac Precision Solutions’ parent company Trac Holdings Limited, two additional non-operating companies, and Trac Precision Solutions’ 100% ownership would all be acquired by PTC Industries as part of the agreement. “This strategic investment aligns with the company’s core business and will enhance operational synergies,” the company said in its regulatory filing.
The Lucknow-based company made it clear that the acquisition is intended to increase its global footprint and make use of both entities’ technical capabilities. Following completion, Trac Precision Solutions will grow into a significant subsidiary that might improve PTC’s manufacturing capacity and reach into new markets, the company stated in the exchange filing.
According to PTC’s statement, the deal would close in three months, pending approval under the UK’s National Security and Investment Act of 2021. According to the exchange filing, the SPA was negotiated with Rcapital Limited and additional stockholders, including Liam Marc Bevington, Kevin Andrew Mooney, and Paul Brian Young.
