HLE Glascoat Limited (BSE:522215) entered into agreement to acquire 70% stake in Kinam Engineering Industries from Mehul Mehta and Kirit Mehta on August 7, 2023. HLE Glascoat will acquire 35.56% interest in Kinam for INR 800 million. for HLE Glascoat reported turnover of INR 1.2 billion on March 31, 2023.

No approval is required for the acquisition of 35.56% share. HLE Glascoat will also acquire the balance 34.44% share in Kinam Engineering Industries once Kinam Enterprises Private Limited will be acquired and amalgamation of it into HLE Glascoat is completed. This will be done post board, stock exchange, shareholder and NCLT approvals.

The acquisition of 35.56% partnership interest in Kinam is expected to be completed by October 15, 2023. As of September 26, 2023, HLE Glascoat completed the acquisition of 35.56% stake in Kinam Engineering. Further, the Board of HLE has approved the additional acquisition of 34.44% share and controlling interest in Kinam Engineering and this will be achieved on KEPL amalgamating into HLE Glascoat.

Ernst & Young Private Limited, Investment Banking Arm acted as financial advisor to Kinam Engineering Industries. RBSA Valuation Advisors LLP provided valuation advisory to HLE Glascoat Limited (BSE:522215).