⚡ Flash Summary

SG Power Limited (SGPL) has been non-operational for several years due to natural gas shortages. Crescent Star Insurance Limited (CSIL) has issued a Public Intent to acquire SGPL, aiming to revive and restructure its business operations. SGPL is exploring options like mergers, rights issues, and capital restructuring to resume operations. The company experienced a significant decrease in sales revenue from 17.3 million in 2024 to 6.1 million in 2025, accompanied by a loss of (8.4) million in 2025 compared to a profit of 1.7 million in 2024.

📌 Key Takeaways

• 📉 SG Power Limited was incorporated in 1994 as a gas-based captive power plant.
• 🚫 Operations have been suspended for several years due to natural gas shortages.
• 🤝 Crescent Star Insurance Limited (CSIL) intends to acquire SG Power Limited.
• 🔄 Acquisition aims to revive and restructure SG Power’s business.
• 🤔 SG Power is considering merger or strategic business combination.
• 💰 Issuance of right shares is being evaluated as a potential strategy.
• 🛠️ Capital restructuring and new business opportunities are under consideration.
• 💪 Measures are aimed at strengthening the financial position and restarting operations.
• ⚠️ Further details will be announced upon the selected strategy.
• 📉 Sales decreased from 17.3 million in 2024 to 6.1 million in 2025.
• 💸 The company went from a profit of 1.7 million in 2024 to a loss of (8.4) million in 2025.
• 😟 Cost of Sales: increased from 14.9 million to 7.9 million.
• ⚠️ Admin & Selling Expenses: increased from 660k to 6.6 million.
• 📉 Earnings per share decreased from 0.094 to (0.47).

🎯 Investment Thesis

HOLD. Given the current financial distress and operational suspension, the stock is highly speculative. The potential acquisition introduces some upside potential, but significant risks remain. Investors should wait for more clarity on the acquisition terms and the company’s future business strategy before making any investment decisions. The company’s net losses outweigh any current upside potential.