Gainwell Group Makes Strategic Move with Acquisition of Kolkata-based TIL Ltd

In a significant development, Gainwell Group has officially announced its acquisition of TIL Ltd, a prominent infrastructure equipment manufacturer based in Kolkata. The acquisition, disclosed by Gainwell Group promoter Sunil Kumar Chaturvedi during a press conference on Wednesday, was executed through Indocrest Defence Solutions (IDSPL), a group entity, leveraging a special dispensation from RBI and Sebi. IDSPL has injected ₹120 crore into TIL, with ₹70 crore allocated for subscribing to the preferential issue of the company's shares.

With the completion of the preferential issue, Gainwell Group's stake in TIL will reach 43%, while Sumit Mazumdar and family's ownership will decrease to 32% from the current 56%. As part of the acquisition, Chaturvedi is set to assume the role of Chairman and Managing Director of TIL Ltd.

This strategic move positions TIL as the first listed entity within the Gainwell Group. Simultaneously, the company is set to initiate a one-time settlement (OTS) of ₹144 crore with its lenders. A substantial portion of this settlement, approximately ₹102 crore, will be executed as a cash settlement with the lenders.

Chaturvedi outlined the group's future plans, stating, "We will introduce a new generation of products with a significant level of digitization across the board, as well as a new range of customer support options to further deepen our competitive edge."

Outgoing Chairman and Managing Director of TIL, Sumit Mazumder, expressed confidence in the strategic measure, noting, "This strategic measure will ensure seamless continuation of TIL’s legacy, growth, and expansion, benefiting our employees and all stakeholders. TIL under Gainwell’s management will be strongly positioned to continue building on top of its eight decades of legacy, ensuring revival in the business performance and expansion that will benefit all stakeholders."

It's worth noting that Gainwell Group had previously acquired the Caterpillar dealership business of TIL in 2016, marking a continued and strategic association between the two entities.

HBL