Power & Instrumentation (Gujarat) Limited — Important, 11-09-2025: Disclosure of material issue

PIGL has acquired an additional 35.82% stake in Peaton Electrical Company Ltd (PECL) for ₹12.54 Crore cash. This move increases PIGL's total holding to 51.06%, officially making PECL a subsidiary.

**Issue:** PIGL is making a strategic investment to enhance its core business. PECL specializes in manufacturing critical electrical components like MV/LV panels, substations, and bus trunking systems, with a reported turnover of ₹36.04 Crore in FY25.

**Impact:** The goal is to drive product development, explore new technologies, and establish a preferred supply relationship for key electrical materials. PECL is set to expand its manufacturing capacity to meet PIGL's requirements, aiming to improve supply chain efficiency and overall growth.

**Watchout:** The acquisition is a related party transaction, as PIGL's promoters previously held 100% of PECL. However, the company states the transaction was conducted at arm's length and received approval from its Audit Committee and Board of Directors. PECL's current management will continue to lead its operations.