Walchandnagar Industries hit an upper circuit of 5% at Rs 161.75 after the company entered into share subscription and shareholders' agreement to acquire 60.3% stake in Aicitta Intelligent Technology Private (Aicitta).
Aicitta is a start-up and is in the business of research and development in defense industry (Unmanned Systems). Its registered office is in Bangalore. Its turnover for FY24 was Rs 4,250.The said acquisition is in line with the companys strategy of diversifying its defense business, as Aicitta and the company operate in similar fields of defense which will help both the companies to grow.
The company shall be acquiring in a combination of equity shares and compulsory convertible preference shares of Aicitta for a total subscription consideration of upto Rs 16 crore, for an ownership stake of approximately 60.3% on a fully diluted basis.
The first tranche of investment is expected within 45-60 days from signing of the transaction documents. The remaining tranches of investment in securities of Aicitta are expected to be completed within 31 months of the completion of the first tranche.
Walchandnagar Industries, a renowned engineering company known for its design, engineering & high complex precision manufacturing capabilities with operational legacy of more than 115 years.
The company reported standalone net loss of 17.13 crore in Q3 FY25 as compared with net loss of Rs 18.66 crore in Q3 FY24. Net sales increased 5.7% YoY to Rs 59.07 crore in Q3 FY25.
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