Shares of multibagger small-cap stock Standard Engineering Technology Ltd. (SETL) are likely to remain in focus on Monday, June 30, after the company announced its entry into the artificial intelligence (AI) infrastructure space through the acquisition of a controlling stake in GScale Energy Pvt. Ltd.
The company’s board has approved the acquisition of up to a 51% equity stake in GScale Energy, a company specialising in data centre engineering and infrastructure solutions. Once the transaction is completed, GScale will operate as a subsidiary of SETL.
Instead of building AI data centre capabilities from scratch, SETL said the acquisition will provide immediate access to GScale’s engineering expertise, relationships with hyperscale customers and existing letters of intent (LOIs). According to the company, the move positions it to tap into the rapidly expanding AI data centre market, where global capital expenditure is estimated at US$5.2-6.7 trillion by 2030.
The acquisition will be executed through a mix of fresh capital infusion and a strategic share swap with GScale’s existing shareholders. SETL has earmarked around ₹190 crore for the first phase of the transaction.
As part of a broader expansion strategy, the company has also approved an overall investment of nearly ₹500 crore, which will be used for equity acquisition, business expansion and working capital requirements. The company said the entire investment will be funded through internal accruals.
While GScale will continue to be managed by its existing founder and leadership team, SETL will provide strategic direction, financial backing and manufacturing capabilities to support future growth.
Company targets 40-50% growth in core business
Alongside its AI expansion, SETL remains optimistic about its existing engineering operations.
“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,” the company said in its exchange filing.
The company believes the acquisition will also strengthen its position in India’s fast-growing AI data centre ecosystem by combining GScale’s concept-to-commissioning capabilities with SETL’s engineering and execution expertise. It noted that India could require around US$20-25 billion of investments in AI and hyperscale data centre infrastructure by 2030 and aims to emerge as a key engineering partner in this segment.
Stock has doubled from March lows
The announcement comes after a sharp recovery in SETL’s share price.
After falling to a record low of ₹104.56 in March, the small-cap stock staged a strong turnaround, rising around 30% in April as buying interest returned. The momentum accelerated further in June, with the stock gaining more than 60% so far this month.
Overall, the shares have surged over 100% from their March lows and are up around 42% in 2026, significantly outperforming many peers in the volatile small-cap segment.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
