Globus Power to buy 51 per cent stake in Punjab CBG venture for up to Rs 65 lakh

Globus Power Generation Ltd has approved an investment of up to Rs 0.65 crore to acquire a 51 per cent partnership interest in Transtech Punjab CBG LLP, a compressed bio-gas and fermented organic manure producer. The proposed acquisition, which will be settled in cash, requires approval from Globus Power shareholders.

The board cleared the proposal at its meeting held on October 12, 2026. Globus Power will acquire the partnership stake currently held by Amitabh Tandon, who is both a partner in Transtech Punjab CBG LLP and a non-executive director of Globus Power.

The transaction is therefore a related-party deal. The company said its promoter group has an interest in the LLP and that the acquisition is being undertaken on an arm's-length basis.

The investment offers Globus Power a majority interest in an entity operating in the biofuel segment, rather than its stated conventional power-generation business. Transtech Punjab CBG produces compressed bio-gas and fermented organic manure, with its investment objective covering biofuel generation, including compressed natural gas, using agricultural and biomass waste through conventional and non-conventional methods.

The move is broadly aligned with Globus Power's previously disclosed strategy of making investments in power-generation businesses and acquiring portfolios of wind, biomass power plants and other assets. However, the company's latest annual report offered limited evidence of an operating generation footprint. It reported nil revenue from operations and nil property, plant and equipment for FY2025-26.

In contrast, Transtech Punjab CBG LLP reported turnover of Rs 5.32 crore for FY2025-26, up from Rs 0.02 crore in FY2024-25. While turnover alone does not indicate the LLP's profitability or cash generation, the target's reported revenue is materially larger than Globus Power's nil operating revenue in the same financial year.

Transtech Punjab CBG was incorporated on April 15, 2024, and is registered in Fatehabad, Haryana. Its capital contribution was increased to Rs 1 crore on October 1, 2025, from the initial Rs 0.10 crore. As of the disclosure date, the LLP's capital contribution stood at Rs 1 crore.

The proposed Rs 65 lakh outlay is also notable against Globus Power's earlier disclosed liquidity position. As of March 31, 2026, the company had cash and Bank balances of Rs 2.34 lakh. The proposed investment is therefore substantially higher than that year-end cash balance, although the company has not disclosed the funding arrangement or its cash position after March 31.

Globus Power had reported a standalone net loss of Rs 12.81 lakh in FY2025-26, after an exceptional credit related to a provision for doubtful advances. Its loss before exceptional items and Tax stood at Rs 51.06 lakh. The company also carried net trade receivables of Rs 805.35 lakh, largely arising from aged related-party balances after expected-credit-loss provisioning.

As of 10:21 am on October 13, 2026, Globus Power shares were trading at Rs 18.00. The stock was up 3.93 per cent from its previous close of Rs 17.32 and stood close to its 52-week high of Rs 18.37. Over the past year, the shares have gained 16.16 per cent, compared with a 6.29 per cent decline in the BSE 500, an outperformance of about 22.45 percentage points.

The acquisition will be completed only after shareholder approval, leaving the approval process and execution of the CBG venture as the next material milestones.

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