PRECOT Limited Acquires Radiance TN Sunrise One Private Limited for ₹1.3 Crore

Coimbatore, India – February 4, 2025 – PRECOT Limited (NSE: PRECOT) has announced the acquisition of Radiance TN Sunrise One Private Limited, a renewable power generator, for a total consideration of ₹1,29,80,520 (₹1.3 crore). The acquisition aims to enhance PRECOT’s renewable energy usage by integrating solar power into its Tamil Nadu unit.

Acquisition Details​

• Target Entity: Radiance TN Sunrise One Private Limited
• Industry: Renewable Power Generation
• Transaction Type: Cash Purchase
• Total Consideration: ₹1.3 crore
• Percentage of Shareholding Acquired: 4.43%
• Regulatory Approvals Required: No
• Acquisition Timeline: Expected completion within 4-5 months

Strategic Rationale​

PRECOT Limited, a leading textile manufacturer, seeks to leverage solar power to optimize energy consumption at its Tamil Nadu facility. The acquisition aligns with its sustainability goals by reducing dependency on conventional energy sources.

Financial Overview of the Target​

• Turnover (FY 2021-22, 2022-23, 2023-24): ₹0
• Profit After Tax: ₹(-25.4 lakh)
• Net Worth: ₹(-34.6 lakh)
• Operational Status: Not commenced operations

Company Background​

Radiance TN Sunrise One Private Limited was incorporated on August 2, 2021, under the Companies Act, 2013. The company specializes in developing, financing, constructing, operating, and maintaining renewable power plants across India.

Conclusion​

The acquisition underscores PRECOT’s commitment to renewable energy adoption while diversifying its operational efficiency through sustainable power solutions. With no prior revenue from Radiance, PRECOT is expected to leverage this investment to enhance its long-term energy strategy.