Sattrix Security Completes Rs. 158 Crore Share Allotment for Acquisition

Introduction

Sattrix Information Security Limited has successfully completed a preferential share allotment valued at Rs. 157.83 crores to strategically acquire Sattrix Software Solutions Private Limited (SSSPL). The transaction, executed through a share swap arrangement, results in SSSPL becoming a wholly-owned subsidiary of Sattrix Information Security. This move is aimed at consolidating the company's software development and cybersecurity service capabilities.

Details of the Transaction

The board of Sattrix Information Security, in a meeting on February 10, 2026, approved the allotment of 45,48,379 equity shares. These shares, with a face value of Rs. 10 each, were issued at a price of Rs. 347 per share. The consideration for this allotment was not cash but was structured as a share swap. This arrangement was based on a swap ratio of 379 shares of Sattrix Information Security for every one share of SSSPL, as approved in a board meeting on October 31, 2025.

Regulatory Pathway and Approvals

The acquisition process followed a structured regulatory timeline, ensuring compliance with all necessary guidelines. The company secured approvals from its board, shareholders, and the stock exchange before finalizing the allotment. The key milestones were achieved over several months, culminating in the final board approval.

Share Allotment Breakdown

The preferential allotment was made to a group of six investors, comprising both promoter and non-promoter categories. The distribution of shares was a critical component of the acquisition structure, ensuring the share swap was completed as per the agreement. The promoters of Sattrix Information Security were significant allottees in this transaction.

Impact on Shareholding Pattern

This strategic allotment has altered the company's shareholding structure. The holdings of the promoter group have been adjusted, and new non-promoter institutional and individual investors have been added to the company's register. This change reflects the integration of SSSPL's ownership into Sattrix Information Security.

Profile of the Acquired Entity

Sattrix Software Solutions Private Limited (SSSPL), incorporated on March 22, 2018, is based in Ahmedabad, Gujarat. The company specializes in software development and consulting. Its services span several high-growth areas, including robotic process automation (RPA), artificial intelligence, big data analytics, and enterprise mobility. SSSPL has demonstrated consistent revenue growth over the past three fiscal years.

Strategic Rationale and Market Position

The acquisition provides Sattrix Information Security with complete management and operational control over SSSPL. This integration is expected to create synergies, enhance the company's cybersecurity service offerings, and expand its network and industry reach. The transaction was identified as a related-party transaction, as promoters Sachhin Kishorbhai Gajjaer and Ronak Sachin Gajjar hold positions in both companies. However, it was conducted on an arm's length basis, supported by an independent fair market valuation report to ensure fairness.

Company Financial Snapshot

Sattrix Information Security has a market capitalization of approximately Rs. 268.60 crores. The company's stock trades with a Price-to-Earnings (P/E) ratio of 66.39 and a Price-to-Book (P/B) ratio of 7.35. These metrics provide a snapshot of the company's valuation in the market following its recent corporate actions and performance.

Conclusion

The completion of the Rs. 157.83 crore preferential allotment marks a significant milestone for Sattrix Information Security. By acquiring SSSPL, the company strengthens its foundation in software development and enhances its portfolio of cybersecurity solutions. This strategic move positions Sattrix for expanded growth and allows it to offer a more comprehensive suite of IT services to its clients.