Low PE, High ROCE Small-Cap EPC Company To Acquire Industrial Cooling Solutions Business For Upto Rs 10 Crore; FII Stake Increases

On Tuesday, Indian equity benchmarks traded marginally lower, with the benchmark Nifty 50 index declining 0.02 per cent to 24,098.15. Amid the broader market weakness, Transrail Lighting share price traded at Rs 515.80, down 0.42 per cent from the previous close, after the company approved the acquisition of up to 100 per cent equity stake in Gactel Turnkey Projects Limited.

Acquires Cooling Solutions Company For Up To Rs 10 Crore

Transrail Lighting informed the exchanges that its Board of Directors has approved the acquisition of up to 50,00,000 equity shares of Gactel Turnkey Projects Limited, representing 100 per cent of its paid-up equity share capital. The acquisition will be undertaken from Ajanma Holdings Private Limited for an aggregate consideration not exceeding Rs 10 crore.

The transaction will be completed through a Share Purchase Agreement and related transaction documents. The final acquisition price will be determined based on an independent valuation report issued by a registered valuer. The company expects to complete the transaction within four months.

Strengthens Industrial Cooling Solutions Portfolio

Gactel Turnkey Projects operates in the industrial cooling solutions and engineering services segment. Its offerings include wet cooling towers, dry cooling systems, air-cooled condensers, industrial chimneys and related engineering services.

The company also undertakes repair, refurbishment and maintenance of cooling towers and industrial chimneys across multiple industrial and infrastructure sectors. Upon completion of the transaction, Gactel will become a wholly owned subsidiary of Transrail Lighting.

According to the company, the acquisition will strengthen its cooling tower engineering and execution capabilities while enhancing expertise in areas such as Induced Draft Cooling Towers (IDCTs), Natural Draft Cooling Towers (NDCTs), industrial chimneys and maintenance services.
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Transrail Lighting Related Party Transaction

The company disclosed that the acquisition qualifies as a related party transaction because both Transrail Lighting and Gactel Turnkey Projects are fellow subsidiaries of Ajanma Holdings Private Limited.

However, Transrail Lighting clarified that the transaction is being undertaken on an arm's length basis and does not require any governmental or regulatory approvals.

FII Stake Increases

According to the latest shareholding pattern, Foreign Institutional Investors (FIIs) increased their stake in Transrail Lighting to 2.17 per cent from 1.13 per cent in the previous quarter, reflecting an increase of 1.04 percentage points. Meanwhile, Domestic Institutional Investors (DIIs) held 8.14 per cent stake compared with 8.21 per cent in the preceding quarter.

Transrail Lighting Management Update

Separately, the Board noted the resignation of Mr Raman Rajagopalan, Deputy Managing Director, who will be relieved from the services of the company with effect from July 31, 2026, following approval by the Nomination and Remuneration Committee and the Board.

About Transrail Lighting

Transrail Lighting Limited is an engineering, procurement and construction (EPC) company engaged in power transmission and distribution, civil infrastructure, railways and lighting projects. The company executes projects across domestic and international markets.

The company provides end-to-end solutions covering design, engineering, procurement, construction and commissioning of infrastructure projects. It continues to expand its capabilities across power, industrial and infrastructure segments through both organic growth and strategic acquisitions.

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Disclaimer: The article is for informational purposes only and not investment advice.