Diamond Power board approves acquisition of machinery to support diversification
- December 11, 2024
The board of directors of Diamond Power Infrastructures Ltd (DPIL) has approved the acquisition of machinery from four entities.
In a brief stock exchange communication, DPIL said that its board of directors, in its meeting on December 11, 2024, approved the acquisition of identified machineries and related equipment from the following four entities:
- Syska Mitter Pvt Ltd
- Miter & Miter Engineers Pvt Ltd
- Emdet Engineers Pvt Ltd
- Miter & Miter
The acquisition would be for an aggregate consideration of Rs.49.74 crore (excluding taxes), DPIL said, adding that it asset purchase agreement would be executed within 90 days.
The DPIL filing added that the object of the acquisition was to support the company’s entry into copper wires and cables. Currently, DPIL is engaged in the manufacture and sale of aluminium conductors and cables.
Miterr Group
According to information independently available, and not contained in the DPIL stock exchange communication, the four above-mentioned entities are part of the Gurugram-headquartered Miterr Group that has interests in areas like automobile parts, lighting, wires & cables, air quality monitoring, etc.
One of the four entities, Syska Miterr Pvt Ltd, is a joint venture between the Syska Group and Miterr Group. It was incorporated in June 2017 for manufacture and sale of building wires, solar cables, e-beam irradiated wires, switchgear, etc.
DPIL revival
It may be recalled that DPIL had turned insolvent and was admitted on the Corporate Insolvency Resolution Process (CIRP) of National Company Law Tribunal (NCLT) in August 2018. NCLT, in an order delivered on June 20, 2022, approved the resolution plan submitted by “GSEC Ltd in consortium with one Mr Rakesh Shah.” (Full name: Rakesh Ramanlal Shah). New The promoters of DPIL, as of March 31, 2024 were Rakesh Ramanlal Shah and his HUF relatives; GSEC Ltd and Monarch Infraparks Pvt Ltd.
Diamond Power owns a cable and conductor plant, spread over 110 acres, at Savli in Gujarat. DPIL is currently in the process of re-commissioning its plant and is expected to complete the activity by June 2025.
Also read: Diamond Power Infrastructure: Order book crosses Rs.1,500 crore
Featured photograph (source: dicabs.com) showing a manufacturing facility of DPIL is for representation only
