AXISCADES Acquires 90% of Cloud Wave for INR 234 Cr

Nature of the Event

This is a regulatory disclosure filed with BSE Limited and the National Stock Exchange of India Limited under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. It informs about the completion of a significant acquisition.

Transaction Execution and Completion

AXISCADES Technologies Limited executed a Share Purchase Agreement with Cloud Wave Technologies Private Limited, its shareholders (Protohubs System Solutions Private Limited, Aureate Polymet Private Limited, Mr. Satish Kumar Pinninti, Mr. Chandrashekar Ramegowda Devalapura, Mr. Mahadevapura Raghavendra Rao Prakash, Mr. Ann Antony, and Mrs. Deepika), and a Shareholders' Agreement with Cloud Wave and Mr. Satish Kumar Pinninti on September 10, 2026. Simultaneously, the company completed the acquisition of 90% of the share capital of Cloud Wave. This acquisition also constitutes an indirect acquisition of 90% of the share capital of Cloud Wave's wholly owned subsidiaries, Protohubs and Aureate.

Purchase Consideration

The total cash consideration for the 90% stake is INR 234 crores, subject to post-closing adjustments as per the provisions of the Share Purchase Agreement. This values the enterprise at approximately INR 260 crores.

Corporate Structure Impact

Consequent to the acquisition and fulfillment of other closing conditions, Cloud Wave Technologies Private Limited, Protohubs System Solutions Private Limited, and Aureate Polymet Private Limited have become subsidiaries of AXISCADES Technologies Limited. Protohubs and Aureate are now step-down subsidiaries.

Details of Acquired Entities

1. Cloud Wave Technologies Private Limited

• Business: An AS9100D certified precision manufacturing company operating seven manufacturing units. It provides precision machining, sheet metal fabrication, stamping, plastic injection moulding, and plastic 3D parts.
• Incorporation: Incorporated on August 13, 2014, in Bengaluru.
• Customer Base: Serves companies in the Aerospace & Defence and Semiconductor sectors in both domestic and export markets.
• Audited Turnover: FY 23-24: INR 36.98 Cr; FY 24-25: INR 68.25 Cr; FY 25-26: INR 107.78 Cr.
• Country of Presence: India.

2. Protohubs System Solutions Private Limited

• Business: Engaged in prototyping and manufacturing, including additive manufacturing, vacuum casting, surface finishing, and mechanical kit assembly.
• Incorporation: Incorporated on April 7, 2025, in Bengaluru.
• Customer Sectors: Aerospace, defence, automotive, medical, consumer goods, and industrial manufacturing.
• Audited Turnover: FY 25-26: INR 6.54 Cr. (No turnover for FY 23-24 and FY 24-25 as it was incorporated in 2025).
• Country of Presence: India.

3. Aureate Polymet Private Limited

• Business: Engaged in precision tooling, plastic injection moulding, die casting, and provides value-added services like sub-assembly and labelling.
• Incorporation: Incorporated on April 16, 2025, in Bengaluru.
• Customer Sectors: Automotive, medical, electrical, robotics, aerospace, electronics, and industrial sectors.
• Audited Turnover: FY 25-26: INR 6.99 Cr. (No turnover for FY 23-24 and FY 24-25 as it was incorporated in 2025).
• Country of Presence: India.

Strategic Rationale and Objects of the Acquisition

The acquisition is a strategic step for AXISCADES to transition from an engineering services-led business model towards aerospace manufacturing. The stated objectives are:

• To offer integrated engineering-plus-manufacturing solutions to existing Aerospace, Defence, and OEM/Tier-1 customers.
• To establish a physical manufacturing platform to be scaled into a larger Centre of Aerospace Manufacturing to qualify for global OEM programmes.
• It is consistent with the company's publicly stated medium-term revenue growth objectives for its Aerospace vertical.

The acquisition is an adjacency to the company's core historical line of business but is not expected to adversely impact existing operations. It is expected to be earnings accretive over the medium term.

Related Party Transaction

The acquisition is confirmed not to be a related party transaction.

Government Approvals

No governmental or regulatory approvals were required for this acquisition, as stated in the disclosure.

Future Acquisition

The remaining 10% shareholding of Cloud Wave may be subsequently acquired by AXISCADES, subject to the terms and conditions set out in the Transaction Documents.