Standard Engineering Technology Approves Strategic Investment in Japanese Equipment Manufacturer GLHAKKO Co., Ltd.

Standard Engineering Technology Approves Strategic Investment in Japanese Equipment Manufacturer GLHAKKO Co., Ltd.​

Standard Engineering Technology Limited, formerly known as Standard Glass Lining Technology Limited, has approved a strategic investment in M/s. GL HAKKO Co., Ltd., a company based in Japan that specializes in glass-lined and specialized process equipment for the pharmaceutical, chemical, and semiconductor-chemical industries. The Board of Directors sanctioned the move to strengthen the Company's technological capabilities and expand its global product portfolio.

The investment is structured in two phases. Phase I involves the subscription of up to 19.19% of the issued and paid-up equity share capital of GL HAKKO Co., Ltd., for an amount of Japanese Yen 1,174 Million (Approx INR 693 Million).

Phase II involves subscribing an additional stake of up to 31.88% in the Target Company within three years from the completion of Phase I and is subject to various necessary regulatory and governmental approvals. Upon successful completion of Phase II, Standard Engineering Technology Limited's aggregate shareholding in GL HAKKO Co., Ltd. would increase up to 51.07%.

The acquisition involves entering into a Shareholders' Agreement (SHA) and a Share Subscription Agreement (SSA) with the Target Company and its existing shareholders. The successful completion of the investment is contingent upon meeting the applicable conditions precedent outlined in these transaction documents.

Strategic Purpose and Business Overview​

The primary objective of the acquisition is to leverage GL HAKKO Co.'s proprietary glass-lining technologies. These include Shell and Tube Glass-Lining, Conductivity Glass-Lined processes, MIZ for semiconductor-grade chemical reactors, and High-Temperature Glass-Lining Technology. The Target Company itself is incorporated in Japan and has been engaged in the business of designing and manufacturing specialized equipment since June 17, 1955.

The proposed acquisition constitutes a Related Party Transaction, with Mr. Yasuyuki Ikeda, Additional Executive Director of Standard Engineering Technology Limited, holding an interest in the transaction. The deal is intended to be conducted on an arm's length basis.

Financial Snapshot of Target Company​

M/s. GL HAKKO Co., Ltd. has consistently maintained strong performance across the last three financial years, as detailed by turnover figures which are presented in both Japanese Yen and Indian Rupees (INR).

The turnover data for the Target Company is summarized below:


The acquisition is expected to be completed within 30 days from the date of agreement, provided all conditions are met. The Target Company operates in the Process Engineering Equipment industry and holds a registration number: 3200-01-011157.

SETL Stock Price Movement​

Shares of Standard Engineering Technology Limited today slipped by 4.99% to settle at ₹267.70 after closing market activity. The equity saw a volume of 1.86 million shares during the session, marking a decline from its previous close of ₹281.75.