Time Technoplast Enters MoU to Acquire 76% Stake in Systoverse Private Limited

Time Technoplast Enters MoU to Acquire 76% Stake in Systoverse Private Limited​

Time Technoplast Limited (TTL) has entered into a Memorandum of Understanding (MoU) with the promoters of Systoverse Private Limited (SPL) for the acquisition of a 76% stake in SPL. This strategic move is positioned as part of TTL's initiative to strengthen its High-Density Polyethylene (HDPE) Pipe portfolio and accelerate inorganic growth.

The proposed acquisition aims to acquire a 76% stake in SPL on a net asset basis. Existing shareholders will retain the remaining 24% stake. The transaction is subject to customary due diligence, including financial, legal, tax, and regulatory assessments.

Operational Synergy and Market Expansion​

The acquisition of SPL is anticipated to create strong synergies and unlock new growth opportunities for TTL. TTL views the move as a strategic expansion that will establish an operational presence in Maharashtra. This regional development is expected to enhance customer reach, drive faster market penetration, and reinforce TTL's position in the regional pipes segment.

SPL, which manufactures ISI-certified HDPE Pipes and Sprinkler Systems under the name 'Systo', is located at Nardana MIDC, Dhule, Maharashtra, India. The company has a pipe manufacturing capacity of 3,600 Metric Tonnes (M.T.) annually.

The transaction offers multiple operational and financial advantages:

• Regional Alignment: The agreement aligns with Maharashtra's infrastructure growth policy, signaling strong potential for business development in the region.
• Operational Readiness: SPL is reported to be fully compliant and investment-ready, holding BIS certification and benefiting from empanelment with Maharashtra Jeevan Pradhikaran (MJP).
• Fiscal Benefits: SPL benefits from a concessional 15% corporate tax rate under Section 115BAB of the Income Tax Act, contrasting with the standard corporate tax rate of 25%. Furthermore, the entity currently enjoys state-provided incentives, including subsidies on Power Tariff, SGST benefits, and interest subsidies, which are expected to continue post-acquisition.
• Infrastructure: TTL will benefit from SPL holding a land and building on a long-term lease at an attractive rate, providing a cost efficient and stable operational base.

Financial and Business Overview​

The acquired entity, Systoverse Private Limited, is not classified as a Related Party of TTL, ensuring that the proposed acquisition will not constitute a Related Party transaction.

In terms of business activity, TTL's Infrastructure offerings generated -q280 Cr in the 9 months of FY26, compared to -R265 Cr in the same period of FY25.

The financial history of Systoverse Private Limited shows the following turnover (approx.):


The consideration for the shares acquired will be paid in cash, subject to due diligence. This proposed acquisition further supports the Company's strategic plans and aligns with the 'Make in India' vision by combining sustainability with innovation in the domestic pipe industry.

TIMETECHNO Stock Price Movement​

On Monday, Time Technoplast Limited shares slipped by 0.52% to close at ₹184.4. The stock finished the session amid trading of 2.58 million shares.

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