Energy and environment solution provider Thermax Ltd has entered into definitive agreements to acquire 35.83% additional stake, taking its total shareholding to 51% on a fully diluted basis in Exactspace Technologies Private Ltd. According to reports from CNBC TV18, the transaction will result in Exactspace becoming a subsidiary of Thermax. Currently, Thermax holds 15.17% in Exactspace as an associate company. The agreements also provide Thermax the right to acquire the remaining 49% stake after three years, subject to conditions mentioned in the agreements.
The acquisition is valued at ₹30.48 crore in cash, subject to transaction adjustments, with the remaining 49% to be acquired after three years. As reported by CNBC TV18, the acquisition does not require any governmental or regulatory approvals. The transaction is classified as a related party transaction, and the promoter/promoter group has no interest in Exactspace. Exactspace Technologies was incorporated on December 14, 2017, and its turnover over the last three years has been ₹6.21 crore (FY25), ₹5.51 crore (FY24), and ₹5.52 crore (FY23).
Exactspace operates in the IT industry, developing Artificial Intelligence-based Industrial Internet of Things solutions for Thermax's manufacturing customers. According to CNBC TV18, the acquisition aims to strengthen Thermax's service offerings, including predictive asset maintenance, process optimisation, asset efficiency improvement, and analytics-driven failure analysis. The company's focus on AI and IoT capabilities aligns with Thermax's strategy to enhance its digital service portfolio. Through this integration, Thermax aims to leverage Exactspace's expertise in predictive asset maintenance, process optimisation, analytics-driven failure analysis and improvement of asset efficiency, uptime and longevity.
Shares of Thermax Limited ended at ₹3,110.00, down by ₹66.95, or 2.11%, on the BSE. As reported by CNBC TV18, this decline occurred despite the company's strong quarterly performance and strategic acquisition announcement. The market reaction suggests investor focus on the company's operational performance rather than the strategic expansion move.
