NSE-Lised Company Diversifies Business Portfolio With This Acquisition Deal of Rs 12.45 Cr

With its subsidiary, Hertz and Pixelz Private Limited, entering into an agreement to acquire the business operations of Hertz and Pixelz, Servotech Renewable Power System Ltd. has reinforced its objective of broadening into the entertainment and events sector.

Servotech's 100% stake in the subsidiary would be shortened to 51% as part of this deal, which is valued at Rs 12.45 crore through the issuance of shares. The transaction, which is anticipated to be finalized in 60 days, is consistent with Servotech's plan to expand its line of business and solidify its position in the event management industry. With revenues of Rs 22.55 crore in FY23, Rs 23.56 crore in FY24, and Rs 12.93 crore in FY25, the acquired entity has a solid track record.

Commenting on the objective of the acquisition, the company said in a regulatory filing that "Servotech maintains a strong foothold in sports and event management, overseeing multiple large-scale events each year. These initiatives entail recurring investments in infrastructure, rentals, and management services. By acquiring Hertz and Pixelz-firms with established assets, deep expertise in corporate and political event management, and a robust rental business for event equipment."

Through its subsidiary, Servotech already has a significant presence in sports and event management, managing many major events annually. In addition to bolstering Servotech's strategic diversification into a high-growth market, its acquisition of Hertz & Pixelz strategically enhances this vertical and marks the start of amazing entertainment experiences.

Raman Bhatia, Founder and Managing Director of Servotech Renewable Power Systems Ltd., commented on the acquisition and said, "We have always believed in pushing boundaries and building ecosystems that inspire progress. The acquisition of Hertz & Pixelz reflects our commitment to entering new avenues that thrive on creativity and precision. With their proven expertise and legacy of delivering iconic events, we are confident this association will allow us to deliver extraordinary entertainment experiences and set new benchmarks in the industry."

Zhuhai Piwin New Energy Co., Ltd., China, and Servotech Renewable Power System Limited recently signed an exclusive strategic alliance on September 8. In line with the government's "Make in India" initiative, the partnership will concentrate on providing technical support and promoting the domestic production of innovative Battery Energy Storage Systems (BESS) in India. Servotech further solidifies its position as a major facilitator of India's embrace of renewable energy with this strategic action.

Electric vehicle (EV) charging systems and renewable energy are the areas of expertise for Servotech Renewable Power System Limited, an Indian company listed on the NSE. The company creates and produces LED lighting solutions, solar products, and EV chargers.