Shares of SAT Industries rose more than 3% on May 16 as prominent investor Ashish Kacholia bought a stake in materials subsidiary Aeroflex Industries Ltd.

In a regulatory filing, SAT Industries said it had sold a 4.05% stake held by its key subsidiary Aeroflex Industries Ltd to Ashish Kacholia and Bengal Finance & Investments Private Ltd for Rs 40.56 crore.

Ashish Kacholia owns no shares in SAT Industries according to the holding pattern as of March 2023.

Shares of the company were trading at Rs 72.5 on the BSE, up 0.3% at 9:20 am. The stock rose to Rs 74.77 from Rs 32.05 in July 2022, its intraday high so far today.

SAT Industries is involved in various activities such as manufacturing, global outsourcing of products and services, real estate, mining and marketing activities. Meanwhile, subsidiary Aeroflex Industries produces stainless steel flexible flow solutions at a Taloja, Navi Mumbai, India plant.

In April 2023, Aeroflex Industries filed a draft red herring prospectus with the Securities and Exchange Board of India (SEBI) to raise around Rs 350 crore in an initial public offering (IPO). The IPO includes a fresh issue of Rs 160 crore and a sale offer of up to Rs 190 crore from its existing shareholders and promoters. The OFS includes up to 12.3 million shares in Sat Industries and up to 5.2 million shares in Italica Global FZC. Sat Industries holds a 92.18% stake in the company, while Italica Global FZC holds a 6.52% stake.

Both Aeroflex and Sat Industries have a history of paying dividends. Sat Industries has a track record of expanding multiple diversified businesses backed by an acquisition-led strategy.