Mukul Agrawal Backed Multibagger Defence Stock In Focus As Company Into Business Expansion As It Enters Into SPA With Trac Precision Solutions Ltd
The stock gave multibagger returns of 213 per cent from its 52-week low, 1,120 per cent in 3 years and a whopping 8,550 per cent in 5 years.
PTC Industries Limited finalized a Share Purchase Agreement (SPA) with Rcapital Limited and three individual sellers, Mr Liam Marc Bevington, Mr Kevin Andrew Mooney and Mr Paul Brian Young. This agreement involves the acquisition of a 100 per cent shareholding of Trac Precision Solutions Limited (TSPL), a UK-based company specializing in precision-engineered components for industries such as aviation, defence and power generation. In total, four companies are being acquired, namely Trac Holdings Limited (THL), Broomco (4266) Limited, Trac Group Limited, and Trac Precision Solutions Limited, with TSPL being the only operational entity generating a turnover of GBP 24.76 million in FY24. This acquisition will expand PTC's market footprint in these specialized sectors, positioning it as a key player in the global precision engineering market.
The SPA stipulates that PTC Industries will acquire 100 per cent of the shareholding of the target companies in a cash transaction, to be completed in one or more tranches. The acquisition is subject to the approval of the concerned authorities in the United Kingdom under the National Security and Investment Act 2021. Upon completion, Trac Holdings Limited (THL) will become a wholly owned subsidiary of PTC Industries, while the other three companies, including TSPL, will become step-down wholly owned subsidiaries. This deal is expected to close within three months, pending regulatory approvals. The total value of the transaction, though not disclosed for confidentiality reasons, complies with India’s Overseas Direct Investment (ODI) Rules.
Importantly, this acquisition will not fall under related party transactions, as PTC Industries’ promoters or group companies have no interest in the target entities. The acquisition does not involve any share issuance, and no significant conflicts of interest are expected to arise. The SPA allows for termination with one month’s notice if necessary. With TSPL as a material subsidiary contributing GBP 24.76 million in FY24 turnover, this strategic move is set to create significant synergies for PTC, strengthening its global presence in the high-demand aviation, defence and power generation sectors.
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PTC Industries Limited is a global leader in manufacturing precision metal components for critical and supercritical applications in sectors like defence, oil & gas and marine. They specialise in producing castings, machined components, and fabricated parts using a wide range of advanced materials, including titanium alloys, stainless steel and nickel-based alloys, to meet the stringent demands of these industries. The company has a market cap of Rs 20,000 crore and reported positive numbers in its Quarterly Results (Q1FY25) and annual results (FY24).
Earlier, the company has secured a substantial order from BAE Systems to supply Titanium castings for the M777 Ultra-Lightweight Howitzer (ULH). These castings, including Spade Trails and Blades, were developed by PTC Industries over the past two years. This significant order marks a milestone in the company's partnership with BAE Systems and showcases its technological expertise in delivering mission-critical components for advanced defence platforms. The castings will be produced at PTC Industries' state-of-the-art facility in Lucknow, Uttar Pradesh, and will contribute to the M777 ULH's lightweight and superior performance.
As of September 2024, DIIs bought 5,53,500 shares and increased their stake to 4.94; FIIs bought 1,94,082 shares and increased their stake to 4.53 per cent & Mukul Agrawal owns 1,60,000 shares or 1.07 per cent stake compared to June 2024. The stock gave multibagger returns of 213 per cent from its 52-week low, 1,120 per cent in 3 years and a whopping 8,550 per cent in 5 years.Investors should keep an eye on this aerospace defence stock.
Disclaimer: The article is for informational purposes only and not investment advice.
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