Harmony Capital to Acquire 51% Stake in Truvolt Engineering via ₹83.47 Cr Share Swap

Synopsis: Harmony Capital Services Limited has approved the acquisition of a 51 percent stake in Truvolt Engineering Co Private Limited through a share swap valued at Rs. 83.47 crore. The company will also issue preferential shares on a non-cash basis to complete the transaction, marking its entry into the engineering and manufacturing sector.

Shares of Harmony Capital Services Limited are likely to remain in focus after the company’s board approved the acquisition of a controlling 51 percent stake in Truvolt Engineering Co Private Limited through a share swap arrangement, alongside a preferential issue of equity shares to complete the transaction.

Harmony Capital Services Limited has a total market capitalization of approximately Rs. 118.65 crore. The company’s shares were trading at Rs. 97.84 apiece on the stock exchange. The stock has gained around 4.99 percent over the last five trading sessions and is currently trading at its 52-week high of Rs. 97.84, while its 52-week low stands at Rs. 55.00. 

According to the company’s exchange filing, Harmony Capital Services will acquire 63,23,700 equity shares, representing approximately 51 percent of Truvolt Engineering’s paid-up equity share capital. Upon completion of the transaction, Truvolt Engineering Co Private Limited will become a subsidiary of Harmony Capital Services, subject to shareholder approval, BSE in-principle approval and other statutory clearances.

The acquisition will be executed entirely through a share swap, with the total consideration amounting to Rs. 83.47 crore. To facilitate the transaction, Harmony Capital will issue up to 1,26,47,400 equity shares at an issue price of Rs. 66 per share, including a premium of Rs. 56 per share, on a preferential basis for consideration other than cash.

The board also approved valuation reports for both companies. Based on the independent valuation, Harmony Capital’s shares have been valued at Rs. 66 per share, while Truvolt Engineering’s shares have been valued at Rs. 132 per share, resulting in a 1:2 share exchange ratio, under which two Harmony Capital shares will be issued for every one Truvolt Engineering share.

The proposed acquisition is aimed at strengthening Harmony Capital’s business through strategic diversification. While the company currently operates as an investment and securities trading business, acquiring a controlling stake in Truvolt Engineering will expand its presence into engineering, manufacturing, fabrication and allied industrial activities, creating an additional growth platform.

Truvolt Engineering, incorporated in 1970, reported a turnover of approximately Rs. 315.09 crore in FY26, compared with Rs. 242.60 crore in FY25, reflecting healthy business growth. The company is engaged in engineering, manufacturing, fabrication and related industrial activities.

In addition to approving the acquisition, the board approved the issuance of equity shares through a preferential allotment to 141 proposed allottees as part of the share swap arrangement. Following the allotment, the company’s paid-up equity share capital is expected to increase substantially, subject to regulatory and shareholder approvals.

For investors, the acquisition represents a significant strategic shift for Harmony Capital Services as it moves beyond its traditional investment business into the engineering and manufacturing sector. If completed successfully, the transaction could diversify the company’s revenue streams, strengthen its long-term business profile and create additional growth opportunities through its new subsidiary.

Incorporated in 1994, Harmony Capital Services Limited is a non-banking financial company (NBFC) primarily engaged in the business of investing and trading in shares, securities and other financial instruments.

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