Shares of Standard Engineering Technology Ltd. will likely steal the spotlight on Monday as it has entered the AI arena after approving an acquisition of up to a 51% equity stake in GScale Energy Private Ltd.
GScale Energy is engaged in Data Center Engineering and Infrastructure Solutions and upon completion of the acquisition, will become an arm of Standard Engineering.
By way of this deal, Standard Engineering will be gaining immediate access to GScale’s domain expertise in the AI data center segment instead of building capabilities organically.
Besides that, it will also expose the company to hyperscaler relationships, and ready-to-market LOIs and accelerate SETL’s entry into a market opportunity of $5.2–6.7 trillion in global AI datacenter capex by 2030, as per the filling.
The company plans to acquire the majority stake through a combination of primary capital infusion and a strategic share-swap arrangement with GScale Energy’s existing shareholders; and has committed around Rs 190 crore for the Phase I investment.
Moreover, as part of a broader phased programme,SETL has approved a total investment of around Rs 500 crore, which will be deployed towards equity acquisition, capacity expansion, and working capital for the combined business. The investment will be entirely self-funded through the company’s internal cash flows.
However, GScale Energy will continue to be led by its founder and leadership team while SETL provides strategic guidance, capital, and access to its manufacturing scale and integrated execution capability.
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2027 Outlook And More
The company is expecting between 40 to 50% revenue growth in its existing operations based on its current order pipeline.
“Looking ahead to FY2027, we remain confident in the underlying strength of our core engineering business. Based on our current order pipeline, customer engagements, and ongoing growth initiatives, management is targeting approximately 40–50% revenue growth in our existing operations, subject to prevailing market conditions and execution outcomes,” it outlined in the filing.
Additionally, the acquisition will allow SETL to tap into India’s rapidly expanding AI Datacenter sector with its expertise in concept-to-commissioning engineering solutions built serving the pharmaceutical, chemical, and biotechnology industries.
“India’s AI and hyperscale Datacenter infrastructure market is projected to require approximately US $20–25 billion of investment through 2030, and SETL intends to be a leading engineering partner in this build-out,” the company stated.
A 100% Rebound From March’s Lows
SETL’s stock bounced back in full force after touching record low of Rs 104.56 in March after buying interest surfaced in April and it surged 30%. In addition to that, the scrip has rallied over 60% in the month of June so far.
Therefore, after making a leap of 104% in three months and gaining 42% in 2026 so far, the stock has outperformed in the highly volatile small-cap segment.
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