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TCC to Acquire NES for Rs 461 Cr

TCC Concept Limited has announced its acquisition of Natural Environment Solutions Private Limited (NES) for Rs. 461.03 crore through a share swap. The completion of the acquisition is anticipated within 15 days upon securing all requisite regulatory approvals.

by Damodharan N

Updated Jul 15, 2024

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TCC to Acquire NES for Rs 461 Cr

TCC Concept Limited has announced a strategic acquisition of Natural Environment Solutions Private Limited (NES) for Rs. 461.03 crore. This move is poised to significantly expand TCC’s business portfolio, aligning with their long-term growth strategy.

The acquisition will be executed through a share swap, with TCC issuing 1,30,97,480 new equity shares to the promoters and non-promoters of NES at an issue price of Rs. 352 per share. This transaction will result in NES becoming a 100% subsidiary of TCC Concept Limited.

The acquisition is based on a valuation report by Mr. Bhavesh M Rathod, IBB Valuer, which was considered and recorded by TCC’s board during a meeting held on July 13, 2024. The board also approved an increase in TCC’s authorized capital from Rs. 25 crore to Rs. 40 crore, pending shareholder approval.

This transaction is categorized as a related party transaction, as TCC’s promoters are also acquiring shares under the preferential issue. Each of the 15,895 equity shares of NES will be acquired at Rs. 2,90,048 per share, inclusive of a premium of Rs. 2,90,038 per share.

This acquisition marks TCC’s entry into the data centre industry, aligning with the company’s strategic expansion plans. NES, with its significant presence in the data centre sector, will complement TCC’s existing operations and enhance its market position.

The board emphasized that this strategic move will not only diversify TCC’s business but also increase shareholder value by leveraging NES’s capabilities and resources. The acquisition is expected to be completed within 15 days of receiving all necessary regulatory approvals, reflecting TCC’s commitment to rapid and effective integration.

Read the full Release Here

TCC Concept

TCC Concepts Ltd is a forward-thinking company dedicated to transforming business growth and innovation. They offer specialized solutions like Sales Funnel Enrichment to optimize sales processes, Decision Assist Solutions for data-driven decision-making, and Enterprise Custom Solutions tailored to unique business needs.

By leveraging advanced technologies and strategies, TCC Concepts Ltd helps businesses attract, engage, and convert prospects, make informed decisions, and achieve long-term success and sustainability.

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Natural Environment Solutions

NES, established on February 2, 2017, is making a mark in India's rapidly growing data center industry. They are setting up a 5 MW capacity data center in Hinjewadi, Pune, and plan to establish or operate over 100 MW of data center capacity in the next three years.

NES specializes in building data center infrastructure and has developed unique designs for Mini Data Centers to support Edge Computing, bringing data closer to users for improved experiences.

Despite no turnover in the last three years, NES is now going to be acquired by  TCC Concepts after the regulatory approval. NES is focused on creating a niche in this burgeoning market.


TCC to Acquire NES for Rs 461 Cr - FAQs

1. What is the acquisition amount for NES by TCC Concept Limited?      

TCC Concept Limited is acquiring Natural Environment Solutions (NES) for Rs. 461.03 crore through a share swap.

2. How will the acquisition be financed?  

The acquisition will be executed through the issuance of 1,30,97,480 new equity shares by TCC at an issue price of Rs. 352 per share.

3. When is the completion of the acquisition expected?  

The acquisition is anticipated to be completed within 15 days upon securing all necessary regulatory approvals.

4. Who conducted the valuation of NES for this acquisition?  

The valuation of NES was conducted by Mr. Bhavesh M Rathod, IBB Valuer, as recorded by TCC’s board during a meeting on July 13, 2024.

5. What will be the status of NES after the acquisition?  

NES will become a wholly-owned subsidiary of TCC Concept Limited post the completion of the acquisition.

6. How does this acquisition align with TCC’s strategic goals?  

This acquisition marks TCC’s entry into the data center industry, enhancing its market position and diversifying its business portfolio.

7. What strategic benefits does TCC expect from acquiring NES?  

TCC aims to leverage NES’s expertise in data center infrastructure to drive business growth and increase shareholder value.

8. Is this acquisition considered a related party transaction?  

Yes, this transaction involves TCC’s promoters acquiring shares under a preferential issue, categorized as a related party transaction.

9. What are NES’s current operations and future plans in the data center industry?    

NES is setting up a 5 MW capacity data center in Pune and plans to expand to over 100 MW capacity in the next three years, focusing on Edge Computing.

10. How does NES plan to contribute to TCC’s long-term strategy?  

NES’s capabilities in data center infrastructure will support TCC in offering advanced technological solutions and enhancing operational efficiencies.

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