Key Event
Airfloa Rail Technology Limited has signed a Memorandum of Understanding (MOU) with KIN Railway Equipment Private Limited for acquiring the business of KIN in Coimbatore. The acquisition may be executed either by way of a slump sale or by way of an asset purchase.
Transaction Details
- Counterparty: KIN Railway Equipment Private Limited, registered office at Plot No. 28/4, 28/5, Nalligoundenpalayam Pirivu, Puduppalayam Post, Avanashi Taluk, Coimbatore, Thekkalur, Tamil Nadu – 641654
- Purchase Consideration: INR 480,000,000 (₹48 Crores), exclusive of taxes
- Assets Included: Business assets, qualifications/certifications, intellectual property, inventory, etc.
- Transaction Structure: Acquisition of business as a going concern/independent undertaking through business transfer/slump sale or acquisition of identified assets, rights and contracts through itemized asset purchase
Approval Process
- Approved and recommended by the Audit Committee
- Finally approved by the Board of Directors on August 27, 2026
- Disclosure made on September 12, 2026
Conditions Precedent
The proposed transaction is subject to:
- Satisfactory completion of due diligence
- Mutually acceptable valuation and consideration
- Approval of the Board of Directors of the Company
- Approval of the Board/shareholders of the Seller, wherever applicable
- Execution of the Definitive Agreement
- Receipt of all requisite regulatory and other approvals
Relationship Status
KIN Railway Equipment Private Limited is an unrelated entity. The promoter/promoter group/group companies have no interest in the entity. This is not a related party transaction.
Expected Benefits
If consummated, the acquisition is expected to enable the Company to expand its business operations and capabilities in the railway and transportation equipment sector.
Current Status
The transaction is presently at the evaluation stage. Definite timelines will be decided at the time of entering into definitive agreement subject to satisfactory outcome of due diligence proposed under the MOU.