Continuing its quiet acquisition spree, Chennai-based Tube Investments of India Limited (TIL) of the Murugappa Group, has inked a share purchase and shareholders' agreement for acquisition of 76 percent equity share capital of Moshine Electronics Private Limited (MEPL), a start-up company.
The shares are being purchased from the promoter and other existing shareholders of Moshine for a consideration of up to Rs 8.64 crore. The start-up was incorporated in April 2019. MEPL has its manufacturing facility in Noida.
It is an all-cash deal. In all, TIL will acquire 20,66,628 equity shares from the promoter and other shareholders of Moshine.
Moshine is engaged in manufacturing and sale of camera modules for mobile phones.
The issued and paid-up equity capital of the start-up firm is Rs 2.72 crore. It reported a turnover (unaudited) of Rs 21 crore in FY2021-22.
Tube Investments, sometime ago, signalled its foray into manufacturing electric vehicles in line with its long-term business growth plans and create multiple lines of new businesses and revenue streams to maintain its growth trajectory. A few days ago, TI Clean Mobility, a fully-owned subsidiary of Tube Investments, executed definitive agreements to acquire a stake of about 65 percent in electric heavy commercial vehicle company, IPL Tech Electric.
“The company has identified electronic products and components as a growth vector. India is a major importer of electronic items and parts. Recent policy initiatives from the Government of India offering production-linked incentives and phased manufacturing programs is expected to boost indigenisation of this growing segment,” the company said in a statement.
"Through our acquisition of Moshine Electronics Private Limited, we have diversified into the electronic components ecosystem which will enable us to fulfil the Atmanirbhar Bharat vision of our country,” M.A.M. Arunachalam, Chairman, Tube Investments, said.
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