The block deal in Foseco India has been successfully completed, with Morgan Advanced Materials exiting its entire 15.26% stake in the metallurgical products maker through open market transactions. According to latest bulk deals data, Morgan Advanced Materials, through its two affiliates Morganite Crucible Ltd and Morgan Terrassen BV, sold a total of 11,50,800 shares for ₹678.62 crore. The shares were disposed of at an average price of ₹5,897 per share, with all shares being exchanged among nine domestic and global investors including SBI MF, Mirae Asset MF, Invesco MF, LIC MF, Mahindra Manulife MF, Catamaran Ventures, Motilal Oswal AMC, Morgan Stanley, and Citigroup.
The floor price was set at ₹5,773.63 per share, representing a discount of up to 5% to the prevailing market price. The proposed transaction was valued at up to ₹664.4 crore based on the floor price and percentage of shares being sold. Following the completion of the block deal, Foseco India shares rose marginally to close at ₹6,371 on the National Stock Exchange (NSE) on Thursday, demonstrating strong market confidence in the structured transaction. The stock has gained 10.61% over the past one week and 19.79% in the last one month, while on a year-to-date basis, Foseco India shares are up 23.46%, with the company now valued at ₹4,819 crore.
The transaction attracted significant institutional participation with LIC MF, Motilal Oswal, Invesco, SBI, Mahindra Manulife, and Mirae Asset MF acquiring shares at the same price of ₹5,897 per share. Other notable participants included Catamaran Ventures (55,978 shares), which paid ₹33.01 crore for a 0.74% stake, Citigroup Global Markets Singapore (42,577 shares), Morgan Stanley Asia Singapore (42,577 shares), and Motilal Oswal AMC (42,577 shares). SBI Mutual Fund took ₹190 crore and Motilal Oswal Mutual Fund took ₹25.11 crore, with the balance going to buyers who did not have to be named. Invesco Mutual Fund emerged as the largest buyer with 2,54,446 shares worth ₹143.4 crore.
The acquisition was aimed at expanding Foseco India's exposure to the foundry business, particularly the non-ferrous segment, through Morganite Crucible's Molten Metal Systems business. The completed block deal allows the two former shareholders to monetise their holding in Foseco India following the share-swap transaction, providing them with liquidity while maintaining the company's strategic expansion in the foundry segment. The successful completion of the transaction demonstrates strong investor appetite for the metallurgical products maker's shares, with the sale by Morgan Advanced Materials not changing the promoter group's holding in Foseco India, as they are classified under the public shareholder category. The deal was facilitated by the Vesuvius Group's need to raise cash for group debt repayment, with the British group selling the stake it had held since 2017.
Foseco India reported a strong start to FY27 with revenue rising 14.42% year-on-year to ₹48 crore in Q1 FY27, up from ₹42 crore in the same period last year. Gross profit more than doubled to ₹15 crore, representing a jump of 144.86% YoY compared with ₹6 crore in Q1 FY26, with gross profit margin expanding significantly by 17.0 percentage points to 31.2% in Q1 FY27, up from 14.3% in the year-ago period. At the bottom line, net profit increased 78.31% YoY to ₹10 crore in Q1 FY27, compared with ₹5 crore in Q1 FY26, with net profit margin improving markedly by 8.9 percentage points to 20.8%, versus 11.9% in the corresponding quarter of the previous fiscal. The robust growth in both revenues and profitability, along with margin expansion, highlights the company's operational efficiency and strong cost management during the quarter.
Foseco India, established in 1958, operates plants at Sanaswadi near Pune and Puducherry, serving firms casting parts for cars, tractors, valves, railways and power equipment. The company has demonstrated strong financial performance with sales growing at 19% CAGR from ₹251 crore in CY20 to ₹604 crore in CY25, while net profit increased at 38% CAGR from ₹15 crore to ₹75 crore over the same period. The company maintains a debt-free balance sheet with reserves of over ₹1,000 crore against minimal borrowings of ₹1 crore, generating operating cash flow of ₹92 crore and free cash flow of ₹85 crore in CY25. Looking ahead, the company has announced plans for a qualified institutional placement fund raise at its 59th annual general meeting on September 23, 2026, and must also sell down about 1.77% of its listed crucible subsidiary to meet minimum public shareholding rules.
