Transaction Structure

  • Divestment: AXISCADES is divesting its Aerospace Engineering Services business to Akkodis
  • Ownership Transfer: Structured in two tranches - Akkodis to acquire 51% controlling interest in first tranche, remaining 49% to be acquired in next 24 to 30 months
  • Consideration: Pro-rated to ownership transferred at each stage
  • Business Scope: Design, engineering analysis, certification support and lifecycle engineering services for global aerospace OEMs

Regulatory and Timing Details

  • Regulatory Status: Subject to customary regulatory clearances and competition law approvals
  • Expected Closing: Tranche 1 closing expected in Q3 FY27 (October 2026 to December 2026)
  • Board Approval: Board of Directors approved the transaction at meeting held on June 12, 2026

Strategic Transformation

This transaction completes AXISCADES' strategic Engineering Services Divestment Programme, transforming the company from a services-led organisation into a proprietary products and IP-focused manufacturing platform. The company will now be structured around four strategic growth pillars:

1. Aerospace Manufacturing, SCM and MRO - at DAC, MAC and DAL facilities, supplying global Tier-1 OEMs across commercial, regional and dual-use aerospace programmes

2. AXISCADES Aerospace & Technologies Private Limited (ACAT) - wholly owned subsidiary focused on Defence Manufacturing, Strategic Electronics and System Integration for Atmanirbhar Bharat priorities

3. XiDA Inc - US-driven Electronics and Semiconductor platform focused on AI-native engineering, semiconductor design enablement, and next generation electronic systems (integrating Mistral ESAI division and ACTL AI team)

4. Space Division - newly established division focused on satellite bus manufacturing and related system integration for Indian and global commercial space opportunity

Financial Implications and Use of Proceeds

  • Funding Purpose: Proceeds will fully fund the Company's Power 930 growth plan
  • Power 930 Target: Approximately ₹9,000 crore revenue and approximately ₹960 crore PAT by FY2030
  • Deployment Areas:
  • Capacity expansion, certification and tooling investments at DAC, MAC and DAL aerospace manufacturing facilities
  • Establishment of new Space division satellite bus manufacturing infrastructure in FY27
  • Strategic acquisitions pipeline in Aerospace and ESAI segments for FY27 and FY28 deployment
  • Investments in Defence Manufacturing and Integration capabilities through ACAT
  • Balance sheet strengthening and strategic optionality through FY27 transition year

Transition Arrangements

  • Transition Period: 18 to 24 months with bilateral customer-footprint support and transitional services agreement
  • Joint Venture Structure: AXISCADES retains 49% economic interest during transition period (24-30 months between tranches)
  • Strategic Benefits: Access to Akkodis' global customer relationships, potential commercial opportunities, and transitional services for systems, certifications and employee continuity

Advisors and Contacts

  • Financial Advisor: Lincoln International (exclusive sell-side)
  • Tax Advisor: BDO (transaction structuring and tax)
  • Legal Advisor: Cyril Amarchand Mangaldas (CAM)
  • Investor Relations: Mukund Santhanam (Chief Growth & Strategy Officer), Akash Pandey

Forward-Looking Statements

The disclosure contains forward-looking statements regarding strategic plans, financial expectations, transaction structure, deployment of proceeds, regulatory clearances, and transitional arrangements. Actual outcomes may differ materially from expectations.

#Tags: #AXISCADES #M&A #SEBIDisclosure #RegulatoryCompliance #CorporateRestructuring #Neutral