Sansera Engineering, a manufacturer of complex and critical precision engineered components for the automotive and non-automotive sectors, has entered into a definitive agreement for a strategic investment in MMRFIC Technology, a company that builds sub-systems for next generation radars.
As per the terms of the agreement, Sansera would make an investment of INR 20 crore in MMRFIC via 149,250 CCPS (Compulsorily Convertible Preference Shares) of INR 100 each with a premium of INR 1,240 per CCPS, and 17 equity shares of INR 1 each with a premium of INR 599 per share.
The equity percentage will be determined on conversion of CCPS based on FY24 EBITDA, said Sansera, and by that measure, the investment would result in an approximate 21% stake in MMRFIC. The agreement offers Sansera the right to invest further and increase its stake up to 51% at a predefined valuation formula.
BR Preetham, Group CEO, Sansera Engineering said the investment will help the company to enter into high technology space and have access to a strong R&D and engineering team, which can address its priority market segments, including defence and aerospace. It also has future potential to exploit opportunities in security, healthcare, telecom (5G) and automotive (autonomous driving sub-systems) technologies, Preetham added.
The alliance is expected to provide significant future growth and value creation opportunities to MMRFIC, said Saravana G, Founder, CEO & CTO MMRFIC Technology, “by supporting our global competitive positioning and increasing our scale, and addressable market”.
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