PG Electroplast Promoters to Sell 5.62% Stake via ₹1,177 Crore Block Deal

27 May 2025 , 03:25 PM

The Promoters of PG Electroplast Ltd will divest up to 5.62% stake comprising of 1.59 crore shares of the company on May 27, 2025, through the block deal mechanism.

The deal will to raise around ₹1,177 crore is being done at a floor price of ₹740 per share, at a discount of 4.4% to the closing price of ₹773.95 on May 25, 2025, on the National Stock Exchange (NSE). JM Financial has been retained as the sole broker for the block deal. After the sale, the promoters’ holding, which sits at 49.37% as of March 2025, will be under a 180-day lock-in.

The sale is being proposed in order to enhance liquidity and broaden institutional participation in the company, which has a market capitalisation of ₹21,930 crore on the exchanges.

PG Electroplast Ltd, a part of the PG Group, is one of the leading companies in the Indian electronics manufacturing services space in the country, pioneering in ODM and OEM solutions., In addition to end to end manufacturing solutions in Lighting, CTV’s, etc., using plastic injection molding machines, they specialize in SMS which include backend integration to system development.

For the March 2025 quarter, the company posted a 108.81% y-o-y growth in net profit at ₹145.23 crore and 77.4% increase in revenue at ₹1,909.86 crore mainly on account of strong demand in consumer electronics category, especially air conditioners and washing machines.

For the full fiscal year FY25, the net profit more than doubled to ₹287.80 crore and the revenues jumped 77.3% on a year-on-year basis to ₹4,869.53 crore, reiterating the company’s strong performance and scalability.

The stock has returned a robust 209.48% over the last 12 months and a tremendous 955.26% in the last three-years and outperformed the Nifty 50, which returned 53.28% during the period.

The announcement of the block deal came even as PG Electroplast was included in the F&O segment of the NSE w.e.f June 27, 2025, along with companies such as 360 One WAM, Amber Enterprises India and KFin Technologies.

The company has also indicated a robust capex plan of ₹800 to 900 crore for FY26 to ramp up manufacturing capabilities and enhance its leadership in the EMS sector are expected to add to investor confidence and long-term growth trajectory.