Batliboi Ltd to acquire Penta Automation Systems Private Limited and Pats Robotics Private Limited

Batliboi Limited (BSE: 522004) ("Batliboi" or the "Company"), a reputed engineering company with a strong legacy in machine tools, air engineering, textile machinery, and environmental engineering, today announced that its Board of Directors has approved the acquisition of 100% of the equity share capital of Penta Automation Systems Private Limited ("Penta"), a profitable specialized provider of customized industrial automation solutions and robotics integration services for manufacturing industries. As part of acquisition of Penta, Batliboi will also indirectly acquire through Penta, Pats Robotics Private Limited ("PAtS"), a group company of Penta which is engaged in the same line of business.

These acquisition, valued at INR 20 crore, marks an important step in Batliboi's growth journey and strengthens its presence in the rapidly expanding industrial automation and robotics segment.

Transaction Overview

The acquisition of Penta is valued at INR 19.8 crore, implying a per-share value of INR 180.98 for shares with a face value of Rs. 10 each. Batliboi will acquire 100% of Penta's equity share capital, comprising 10,94,200 equity shares, through a combination of upfront and deferred consideration.

At closing, Batliboi will acquire an 80% stake in Penta for an upfront cash consideration of INR 15.84 crores. The remaining 20% stake will be acquired through a deferred consideration mechanism of INR 3.96 crores, payable in five equal annual instalments beginning April 1, 2027.

The shares are being acquired from Penta's existing shareholders, comprising Manders Industries B.V., Netherlands, which holds a 49% stake, and the Company's founders, Mr. Dharmesh Mistry and Ms. Avani Mistry, who collectively hold the remaining 51% stake. Following completion of the transaction and payment of the deferred consideration, Penta will become a wholly owned subsidiary of Batliboi Limited.

As part of the transaction, PAtS will become a wholly owned subsidiary of Penta before the acquisition is completed and INR 0.2 Cr will be funded by Batliboi to Penta for such acquisition on Closing. Consequently, upon closing, PAtS will become an indirect wholly owned subsidiary of Batliboi Limited through Penta. PAtS reported revenue from operations of INR 3.61 crores in FY2025-26. The combined revenue of the Penta Group for FY2025-26 was Rs. 25.17 crores.

Founders Mr. Dharmesh Mistry and Mrs. Avani Mistry will continue to lead operations of Penta under the management and control of Batliboi Limited by way of employment by Penta for the said period of 5 years and drive its next phase of growth by leveraging Batliboi's broad customer network and financial strength.

The acquisition is expected to be completed on or before July 31, 2026, subject to the satisfaction or waiver of customary conditions precedent under the definitive transaction agreements.

Penta Automation Systems Private Limited ("Penta") and PAtS Robotics Private Limited ("PAtS"), provide customized industrial automation solutions and robotics integration services for manufacturing industries. Headquartered in Umbergaon, Gujarat, Penta designs and delivers automation systems that help manufacturers improve productivity, efficiency, and operational reliability.

Over the years, they have built a strong track record in delivering tailored automation solutions across a range of industrial applications. They have demonstrated consistent profitable growth, with revenue from operations increasing from INR 20.31 crores in FY2023-24 to INR 19.93 crores in FY2024-25 and INR 25.17 crores in FY2025-26.

Strategic Rationale

The acquisition supports Batliboi's strategic growth objectives and expansion plans.

1. Entry into High-Growth Segment: Establishes Batliboi's presence in the industrial automation and robotics integration segment, a rapidly expanding area within advanced manufacturing.

2. Complementary Capabilities: The acquisition adds automation and robotics expertise that enhances and complements the Company's existing capital goods and machine tools businesses.

3. Business Diversification and Growth: Penta brings deep automation expertise, proven execution capabilities, and consistent revenue growth from blue-chip customers, strengthening Batliboi's position in a high-growth market.

4. Long-term Value Creation: The acquisition is expected to create long-term value for customers and shareholders, since it is profitable and in high growth market.

Comment From the Management - Nirmal Bhogilal - Chairman of Batliboi Ltd

"The acquisition of profitable Penta Group marks an important step in Batliboi's strategic evolution and reinforces our commitment to building a future-ready engineering business.

Penta has developed strong capabilities in customized automation solutions and earned a reputation for technical excellence and customer-centric execution with blue-chip customers, including SKF, Tenneco, Schaeffler, and Siemens. We believe Penta's expertise complements Batliboi's long-standing presence in the manufacturing ecosystem and creates opportunities to offer customers a broader range of technology-driven solutions.

We are pleased to welcome the Penta team, including its founders, to the Batliboi family and look forward to working closely with them to expand our automation capabilities, drive innovation, and create lasting value for all stakeholders."

Shares of BATLIBOI LTD. was last trading in BSE at Rs. 80.69 as compared to the previous close of Rs. 80.45. The total number of shares traded during the day was 3161 in over 44 trades.

The stock hit an intraday high of Rs. 82.19 and intraday low of 80.29. The net turnover during the day was Rs. 255378.00.

Source : Equity Bulls

Keywords

BATLIBOI INE177C01022 IndustrialMachinery Acquisition PentaAutomationSystems PatsRobotics