Transaction Overview

Sunita Tools Limited executed a Joint Venture 50:50 Share Acquisition and Strategic Cooperation Agreement on October 24, 2026, to acquire registered voting shares representing 50% of the issued share capital and voting rights of an undisclosed target entity incorporated in Bulgaria. The target entity has been engaged in the defence industry for 20 years.

Financial Details

  • Target Entity Share Capital: EUR 25,500 comprising 50,000 registered voting shares of nominal value EUR 0.51 each
  • Acquisition Percentage: 50% of issued share capital and voting rights
  • Consideration Type: Cash consideration
  • Purchase Price: To be determined after financial, legal, tax, licensing and commercial due diligence and an independent valuation
  • Post-acquisition Ownership: Company will hold 50%, Seller will hold remaining 50%

Conditions Precedent

The acquisition is conditional upon:

  • Completion of due diligence
  • Independent valuation
  • Compliance with FEMA and Overseas Investment regulations
  • Requisite regulatory approvals in India and Bulgaria
  • Execution of signed price schedule/addendum approved by both parties

Strategic Rationale

The acquisition is a strategic investment aimed at expanding the Company's presence in the defence sector in Europe/NATO. The transaction will provide access to the target entity's NCAGE code and defence registration certificates in Finland, Sweden, Netherlands, and South Korea (DAPA), which will be eligible for Sunita Tools Limited's products.

Timeline

The acquisition is expected to be completed within approximately 90 days from the date of the Agreement (October 24, 2026).

Regulatory Aspects

  • Related Party Transaction: No
  • Arm's Length Basis: The consideration will be determined on an arm's length basis
  • Government Approvals: No statutory approvals required
  • Target Industry: Defence Industry
  • Target Incorporation Date: March 2002
  • Country of Presence: Bulgaria

Additional Information

  • Turnover for the last three financial years is not disclosed due to commercial confidentiality
  • The target entity's name is not specified due to commercially sensitive information
  • Upon completion, the Target Entity will become a direct JV partner of the Company

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