Sansera Engineering announced that it has signed a definitive agreement for a Rs 20 crore strategic investment in MMRFIC Technology. Sansera intends to invest Rs 200 million (Rs 20 crore) in MMRFIC through 1,49,250 CCPS (Compulsory Convertible Preference Shares) of Rs 100 each, with a premium of Rs 1,240 per CCPS, and 17 equity shares of Rs 1 each, with a premium of Rs 599 per share. The equity percentage will be determined at the time of CCPS conversion based on FY24 EBITDA.
“Based on FY24 EBITDA projections, this investment would result in a roughly 21% stake in MMRFIC. Sansera has the option to invest further and increase its stake to up to 51% based on a predetermined valuation formula “According to a statement. Sansera Engineering’s Group CEO, B R Preetham, stated: “I am delighted to inform you that we have signed a binding agreement to make a strategic investment in MMRFIC Technology Private Limited (MMRFIC). Diversification and collaboration have always been an important part of our journey.” The transaction provides an opportunity to strengthen this strategy by expanding the company’s non-ICE offerings.
“Furthermore, it demonstrates our commitment to our emerging aersopace and defence business,” Preetham added. Sansera’s strategic investment in MMRFIC will enable it to enter the high-technology space and gain access to a strong R&D and engineering team capable of addressing its priority market segments, defence and aerospace. It also has future potential in the telecom (5G) and automotive (autonomous driving subsystems) industries. Sansera is a technology-driven integrated manufacturer of complex and critical precision engineered components for the automotive and non-automotive industries.