AXISCADES Technologies Limited has made a regulatory disclosure pursuant to Regulation 30 of SEBI Listing Regulations regarding an acquisition approved by its Board of Directors.

Acquisition Details

  • Target Entity: Cloud Wave Technologies Private Limited, a private limited company incorporated under the Companies Act, 2013 in Bengaluru
  • Current Shareholders: Mr. Satish Kumar Pinninti, Mr. Chandrashekar Ramegowda Devalapura, Mr. Mahadevapura Raghavendra Rao Prakash, Mrs. Ann Antony, and Mrs. Deepika (collectively referred to as "Sellers")
  • Acquisition Structure: 90% equity stake acquisition with possibility to acquire remaining 10% subsequently
  • Consideration: Cash payment of approximately INR 234 crores
  • Enterprise Valuation: Approximately INR 260 crores (subject to finalization of accounts and adjustments per definitive agreements)
  • Industry: Manufacturing (precision engineering and manufacturing)
  • Certification: AS9100D-certified precision manufacturing company

Target Company Financials

Cloud Wave Technologies Private Limited reported the following audited turnover:

  • FY 2023-24: INR 36.98 crores
  • FY 2024-25: INR 68.25 crores
  • FY 2025-26: INR 107.78 crores

Operational Details

  • Manufacturing Units: Seven operational manufacturing units
  • Services: Precision machining, sheet metal fabrication, tooling, plastic injection moulding, plastic 3D printing, surface treatment, and power press parts
  • Customer Base: Aerospace & Defence, Semiconductor sectors
  • Markets: Domestic and export markets
  • Incorporation Date: August 13, 2014
  • Headquarters: Bengaluru, India

Strategic Rationale

The acquisition represents a strategic step in AXISCADES' growth plan to transition from an engineering-services-led business model toward aerospace manufacturing. The objectives include:

  • Building owned manufacturing capability and capacity to complement existing Aerospace, Defence and Electronics/Semiconductor offerings
  • Enabling integrated engineering-plus-manufacturing solutions for existing customers
  • Establishing a physical manufacturing platform to be scaled into a larger Centre of Aerospace Manufacturing
  • Qualifying for and servicing global OEM manufacturing programmes
  • Supporting medium-term revenue growth objectives for the Aerospace vertical

The acquisition is not a related party transaction, and no promoters/promoter group/group companies have any interest in Cloud Wave.

Timeline and Completion

  • 90% shareholding acquisition targeted for completion by September 30, 2026
  • Remaining 10% shareholding may be subsequently acquired subject to terms and conditions in definitive agreements

Expected Impact

The acquisition is not expected to result in any adverse impact on the Company's existing business operations and is expected to be earnings accretive over the medium term, subject to completion of the transaction on the agreed terms.

No governmental or regulatory approvals are required for this acquisition.