Global private equity giants are actively pursuing a controlling stake in Gemsons Precision Engineering at a valuation of ₹1,000-1,200 crore. According to reports from Mint, EQT, Carlyle, Blackstone and ChrysCapital are among the firms expressing interest in the deal. The transaction involves an 80-100% stake sale by the promoter entity, with the deal launched by the company and initial feelers sent to private equity firms. The deal has been launched by the company, and initial feelers have been sent to private equity firms, including EQT, Carlyle, Blackstone and ChrysCapital, the people said, adding that the idea is to enable a platform creation and expand capabilities.
The acquisition strategy follows the platform creation model, where private equity firms acquire primary companies to serve as anchors for subsequent bolt-on acquisitions. As reported by Mint, the deal is designed to enable platform creation and expand capabilities in the precision engineering sector. The transaction is likely to involve an 80-100% stake sale by the promoter entity, they said. Platform refers to the concept of private equity firms acquiring a primary company to serve as the anchor for making subsequent bolt-on acquisitions to scale rapidly. All sources spoke on condition of anonymity due to the private nature of the discussions.
In FY25, Gemsons demonstrated robust financial growth with operating revenue of ₹170.8 crore compared to ₹136.2 crore in the previous year. According to filings sourced by Tofler from the ministry of corporate affairs, the company's net profit widened to ₹27.4 crore from ₹20.1 crore in FY24. The company has established itself as a leading precision engineering manufacturer with nearly four decades of experience in CNC manufacturing and assembly.
The $80 billion global precision engineering market is experiencing strong growth at a 15-20% CAGR, with long qualification cycles of 18-36 months creating durable barriers to entry. As reported by Avataar Ventures, once suppliers are qualified, they can remain embedded in customer supply chains for decades. Gemsons, established in 1982 by the late Thomas Pereira, has served major global engineering companies including General Electric, Siemens, Emerson Electric, and ABB, manufacturing over 15,000 critical components across multiple industries. Broadly, precision engineering—spanning aerospace components, gas turbines, nuclear-grade parts and submarine propulsion systems—sits at the intersection of national security and industrial capability.
