POCL Enterprises to acquire 51% Stake in Trichy Metals and Alloys for ₹12.47 Crore

In a major move to expand its footprint in the lead recycling and non-ferrous metals space, POCL Enterprises Limited (POEL) has announced that its Board of Directors has approved the acquisition of a controlling 51% stake in Trichy Metals and Alloys Private Limited (TMA).

The decision was finalized during a board meeting on July 1, 2026. The transaction will be executed via a combination of purchasing equity from existing shareholders and subscribing to fresh equity shares on a preferential basis.

Transaction Details and Deal Valuation

The acquisition is a pure cash consideration deal valued at an aggregate investment of ₹12,46,88,690 (approximately ₹12.47 crore).

POEL will acquire a total of 69,310 equity shares (face value of ₹10 each) at a transaction price of ₹1,799 per share (which includes a securities premium of ₹1,789 per share). The company expects to fully wrap up the acquisition process on or before August 30, 2026, subsequent to which TMA will operate as a direct subsidiary of POEL.

The transaction is structured completely at arm's length. The disclosure confirms that TMA is not a related party, and none of POEL's promoters or promoter group entities hold any pre-existing interest in the target company.

Strategic Rationale and Operational Synergy

TMA is an established, profitable player in the manufacturing of lead ingots and metal trading, operating out of Trichy, Tamil Nadu since its incorporation in February 2019. The acquisition aligns seamlessly with POEL's core operations.

Key operational strengths that drove the POEL Board's approval include:

Substantial Infrastructure Capacity: TMA brings an installed refining capacity of approximately 26,000 MTPA alongside a smelting capacity of around 21,500 MTPA.

High Revenue Runway: At full capacity, TMA possesses an estimated revenue potential of ₹600 crore per annum.

Future Diversification & Import Tailwinds: TMA is currently in the process of securing approvals from the Ministry of Environment, Forest and Climate Change (MoEF) to import lead scrap. This regulatory gateway opens future avenues to diversify into processing other non-ferrous metals like copper and aluminum.

TMA Financial Profile and Growth Trajectory

Reviewing the past three fiscal years, Trichy Metals and Alloys has demonstrated a consistent upward trajectory in its top-line performance:

FY 2023-24 Turnover: ₹103.97 crore (Audited)
FY 2024-25 Turnover: ₹112.85 crore (Audited)
FY 2025-26 Turnover: ₹163.74 crore (Audited)

For the recently concluded fiscal year ended March 31, 2026, TMA coupled its highest-ever turnover of ₹163.74 crore with a clear bottom-line profit, delivering a Profit After Tax (PAT) of ₹3.60 crore. Backed by an established brand name and a sturdy domestic supply chain network, the target company is positioned to immediately turn yield-positive for POCL Enterprises upon completion of the takeover.

Source : Equity Bulls

Keywords

POCLEnterprises StakeAcquisition TrichyMetalsandAlloys