Stelmec Limited, a Mumbai-based company, has been making electrical power products for over 30 years. It is a trusted partner for both government and private power companies. The company has raised Rs. 175 crores from the Abakkus Four2Eight Opportunities Fund with help from Hem Securities Ltd. Stelmec makes MV switchgear and high-voltage products for power networks.
The funds will help expand its business, improve research, and grow in India and abroad. Leaders from Stelmec, Abakkus, and Hem Securities believe this investment will boost growth and innovation in the power sector. Stelmec continues to be a strong player in India’s power industry.
What is Abakkus?
Abakkus is an asset management company based in Mumbai, India. It was founded by Sunil Singhania, a well-known investor in the Indian stock market. Abakkus focuses on managing investments in high-growth companies and offers various funds, including portfolio management services (PMS) and alternative investment funds (AIFs).
One of its key funds, Abakkus Four2Eight Opportunities Fund, is a private equity fund that invests in companies with strong growth potential. The company is known for its expertise in stock picking and long-term wealth creation. Abakkus aims to support businesses in sectors like finance, technology, and infrastructure by providing capital for expansion.
Why is This Funding Significant?
This Rs. 175 crore funding for Stelmec Limited is a major milestone, as it will help the company expand its business, increase production capacity, and enhance research and development efforts. With India focusing on strengthening its power infrastructure, Stelmec’s role in manufacturing MV switchgear and high-voltage products becomes even more crucial.
The investment from Abakkus Four2Eight Opportunities Fund, known for backing high-growth companies, reflects strong confidence in Stelmec’s future. Additionally, the successful execution of this deal by Hem Securities Ltd. highlights the growing investor interest in India’s power and infrastructure sectors.
This funding will create new opportunities, improve product quality, and drive innovation in the electrical solutions industry. Ultimately, it not only accelerates Stelmec’s growth but also contributes to the modernization of India’s power sector, attracting further investments and strengthening the country’s energy network.
How Will the Funds Be Used?
The Rs. 175 crore raised by Stelmec Limited will be used to expand its business operations, enhance research and development, and strengthen its market position in the power sector. A significant portion of the funds will go towards increasing manufacturing capacity and expanding its presence in both domestic and international markets.
Additionally, Stelmec plans to invest in R&D to develop advanced electrical products, particularly in MV switchgear and high-voltage solutions, ensuring innovation and technological advancements. The company will also use the funds to upgrade infrastructure and adopt new technologies, improving efficiency and meeting the growing demands of the power transmission and distribution industry.
By strategically utilizing this investment, Stelmec aims to solidify its leadership in the electrical solutions sector and drive future growth.
Founders’ Perspective
The leadership at Stelmec sees this funding as a game-changer, enabling them to expand, innovate, and strengthen their position in India’s power sector. With the support of Abakkus Four2Eight Opportunities Fund, they aim to drive long-term growth and create value for stakeholders.
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Key Takeaways
- Significant Funding Boost – Stelmec Limited raised Rs. 175 crore from Abakkus Four2Eight Opportunities Fund, marking a major milestone in its growth journey.
- Expansion & Innovation – The funds will be used for business expansion, R&D, and technology upgrades, strengthening Stelmec’s position in the power transmission and distribution industry.
- Strong Investor Backing – Abakkus Asset Manager Pvt. Ltd., known for investing in high-growth companies, sees Stelmec as a valuable long-term investment, ensuring future scalability.
- Strategic Deal Execution – Hem Securities Ltd. played a key role in structuring and closing the deal, showcasing strong investor confidence in India’s power infrastructure sector.
- Leadership Vision – MD Hamza Arsiwala emphasized that this investment validates Stelmec’s business strength, supports innovation, and enhances its global presence.
Conclusion:
The Rs. 175 crore funding marks a new chapter in Stelmec Limited’s growth journey, enabling it to expand operations, enhance innovation, and strengthen its presence in India and global markets. With support from Abakkus Four2Eight Opportunities Fund, Stelmec is well-positioned to drive technological advancements in MV switchgear and high-voltage solutions.
The company remains committed to delivering high-quality electrical products and contributing to India’s power sector transformation. As Stelmec accelerates its expansion and R&D efforts, it aims to set new industry benchmarks, ensuring sustainable growth, enhanced market leadership, and long-term value for stakeholders in the evolving energy landscape.
Investment That Matters: How Abakkus & Hem Securities are Empowering Stelmec.
