SETL Acquires 51 Percent Stake in GScale Energy for Rs 190 Crore

Hyderabad-based precision and multidisciplinary engineering firm Standard Engineering Technology (SETL) has announced it is acquiring up to a 51 percent stake in GScale Energy for ₹190 crore. The transaction, structured as a cash and share swap deal, will establish GScale Energy as a subsidiary of SETL and mark the company's entry into the AI datacentre infrastructure market.

Through this acquisition, the combined entity plans to build a platform capable of delivering complete, concept-to-commissioning AI datacentre solutions. These solutions will range from power and cooling infrastructure to precision fabrication, automation, and commissioning. Manufacturing operations under the new venture are expected to commence in November.

SETL Managing Director Nageswara Rao Kandula stated that the acquisition route was chosen over organic development to secure immediate access to GScale's domain expertise, hyperscaler relationships, and ready-to-market letters of intent. GScale Energy is led by Kasu Brahma Reddy, a veteran with over 25 years of experience in the datacentre industry and the former president of CtrlS Datacenters.

To support this expansion, SETL plans to invest approximately ₹500 crore. This capital will be allocated across the equity acquisition, capacity expansion, and working capital for the combined business, funded entirely from the company's internal cash flows. The company has set a revenue target of ₹250 crore from this new vertical for the current fiscal year.

Historically, SETL has primarily catered to pharmaceutical and chemical companies. This acquisition accelerates the firm's entry into the global AI datacentre capital expenditure market, which is projected to reach $5.2–6.7 trillion globally by 2030, including $40–50 billion in India.

Following the announcement, SETL shares closed 4.91 percent lower on the BSE at ₹213.20 apiece, after earlier touching a new 52-week high of ₹236 during intra-day trading.