Following the company’s announcement that it will enter the early stages of the aerospace, defense, and electric vehicle components industries, Raymond shares saw a 2.28% increase in value on Friday, closing at Rs 1,856 per share. The Raymond Group reported on Friday in an exchange filing that it had acquired a 59.25% share in Maini Precision Products Limited (MPPL) for a sum of Rs 682 crores, which was paid by a combination of internal accruals and debt.
With a complementary company that operates in the emerging industries of aerospace, electric vehicles (EVs), and defense, Raymond’s current engineering business will be further strengthened with this acquisition, which is viewed as a strategic move. The combined company serves the leading global original equipment manufacturers (OEMs) and Tier 1 producers in the automotive, aerospace, defense, and industrial sectors.
Raymond’s engineering business will become a large-scale provider of automotive, EV, aerospace, and defense components with this acquisition. It will also be uniquely positioned to target high-growth precision engineering products with a significant presence in both domestic and international markets.
Raymond’s intentions for the future: after the acquisition, he will create a new company called “Newco” by combining the operations of JK Files, RPAL, and MPPL. The “Newco” will be 66.3% owned by Raymond Ltd. and will concentrate on precision engineering products. As of FY23, “Newco” had a proforma consolidated revenue of about Rs 1600 crore and an EBIDTA of about Rs 220 crore.
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