Shares of Raymond Ltd were trading 5% above and reached an intraday high of Rs 1,903.95 on 3 November after the company announced that it had acquired 59.25% stake in Maini Precision Products Limited for a total consideration of Rs 682 crore.

The acquisition is being funded by a mix of debt and internal accruals and is set to be completed during the current fiscal year. Moreover, the company added that it would remain net cash positive post-acquisition.

With this acquisition, the company will enter the brimming sectors of the Defence, Aerospace, and Electric Vehicles components business.

The acquisition will be concluded through Ring Plus Aqua Limited, a subsidiary of JK Files and Engineering Ltd.

Following the completion of the acquisition, the company will consolidate its engineering businesses, including Ring Plus Aqua Limited, JK Files and Engineering Ltd, and Maini Precision Products Limited, under one entity, building a new subsidiary ‘Newco’.

Gautam Maini, founder of Maini Precision Products Limited, said, “I am delighted to lead Raymond’s consolidated engineering business. This strategic merger represents the harmonious integration of our diverse strengths, thus creating a platform for synergistic collaboration. Leveraging our core competencies, this partnership will usher in myriad opportunities for rapid growth and expansion, affording us a competitive edge in both international and domestic markets.”

In its regulatory filing, the company said, “This acquisition is a strategic move to further strengthen Raymond’s existing engineering business with a complementing business that has presence in the sunrise sectors of Aerospace, EV and Defense. The consolidated business caters to the top Global OEMs and Tier 1 manufacturers across aerospace, defence, auto and industrial businesses.”

Post this acquisition, the company’s engineering business will emerge as a large-scale provider of Automotive, Engineering, Aerospace, Electric Vehicles, and Defence components, which will be distinctively positioned to target high-growth precision engineering products and create a significant presence across international and domestic markets.

At 3:01 pm, the shares of Raymond Ltd were trading 3.80% higher at Rs 1,882.35 on NSE.