New Delhi, Aug. 6 -- Electrical equipment maker Stelmec Ltd is planning a fresh fundraise which may even see the company's promoters diluting a majority stake to the incoming investors, two people aware of the development told VCCircle.
Stelmec, which is backed by Sunil Singhania-led Abakkus Asset Manager Pvt Ltd, is looking to stitch a deal worth about $200 million (about Rs 1,900 crore), one of the persons said, asking not to be named.
The second person, who also didn't wish to be named, said that the investment banking arm of Axis Bank is believed to be helping the company to scout for potential suitors.
This person said discussions are at a nascent stage and the deal terms may change depending on the interest from potential investors.
Email queries sent to Stelmec, led by CEO and managing director Hamza Arsiwala, and Axis Capital remained unanswered till the time of publishing this article.
The development comes a year and a half after the company raised Rs 175 crore in funding led by Abakkus Four2Eight Opportunities Fund. At the time, Stelmec said it would use the funds to accelerate its expansion plans, enhance R&D capabilities, and strengthen its market presence both domestically and internationally.
The Abakkus fund is the firm's maiden private equity vehicle and marked its final close in late 2024 with a corpus of Rs 2,400 crore. It invested Rs 150 crore in Stelmec. Last month, it led a Rs 100 crore funding round in Ekkaa Electronics India Ltd. It has invested in five other companies including Caliber Mining and Logistics, and Botanic Healthcare.
Stelmec operates in a crowded electrical materials market that includes several publicly listed local companies such as Havells, Polycab, Crompton Greaves Consumer Electricals and KEI Industries as well as the Indian units of multinational firms ABB, Siemens, and Schneider Electric.
The India electrical materials market size crossed $20 billion in 2025 and is likely to cross $29 billion by 2034, according to industry estimates. The market is growing thanks to rising urbanization, infrastructure expansion, and industrial development that is boosting demand for switchgear, wiring devices, and automation solutions.
Stelmec's product portfolio includes medium voltage switchgears, vacuum circuit breaker panels, outdoor kiosks, and high-voltage disconnectors. It operates three factories in Ahmedabad and Mumbai.
Additionally, the company provides engineering, procurement, and construction services for high-voltage substations, as well as transmission and distribution lines.
The company posted revenue from operations of Rs 1,047 crore in FY25 as against Rs 757 crore the year before. Its net profit rose to Rs 68.4 crore as against Rs 21.6 crore, according to VCCEdge.
Published by HT Digital Content Services with permission from VC Circle.