11 December 2023
Ring Plus Aqua Limited , a sub subsidiary of Raymond ltd. has strategically acquired a 59.25% stake in Maini Precision Products Limited (“MPPL”) by purchasing equity shares from various entities, including Gautam Maini, Sandeep Kumar Maini, Maini Family Trust, KMaini Motorsports India Private Limited (collectively, the “MPP Group Members”), Paragon Partners Growth Fund - I, and Amit Mohatta (together, the “Minority Investors”). The total value of this strategic acquisition was approximately ₹682 crore, financed through a combination of debt and internal accruals.
Following the completion of the acquisition, Raymond will consolidate JK Files, RPAL, and MPPL businesses to establish a new subsidiary (“Newco”), in which Raymond will hold a 66.3% stake. The proforma consolidated revenue of “Newco” for FY23 is projected to be ₹1,600 crore, with an EBIDTA of ₹220 crore.
Regarding MPPL's business operations, it encompasses 11 manufacturing facilities in India spanning two verticals: aerospace, specializing in precision products for aerospace and defense, and automotive and industrial, involving precision products for clean internal combustion engines, fuel injections and transmissions, EV components, hydraulics, as well as industrial and agricultural applications. MPPL, with a 70% export contribution, generated approximately ₹750 crore in total revenue in FY23, boasting a 13% EBITDA margin.
