JK Defence & Aerospace Limited, a wholly owned subsidiary of Jaykay Enterprises Limited, announced that it has acquired a 76.41 per cent equity stake in Allen Reinforced Plastics Private Limited (Allen). The cost of acquisition is approximately ~Rs 90 crore for acquiring 76.41 per cent equity stake in Allen, the company said in a regulatory filing, and the consideration for acquisition, it added, is in the form of cash payment. “The acquisition is part of the inorganic growth plans of JayKay Enterprises Limited, through its WOS JK Defence in Defence & Aerospace Sector. Post-acquisition Allen will become a subsidiary of JK Defence and step down subsidiary of the company,” it said.
Allen Reinforced Plastics is involved in the design, development, manufacture and testing of composite and allied engineering products for the purpose of defence, aerospace and engineering products like missile & rockets components, underwater applications, marine and submarine, gun and accessories. The company has a presence in India and operates in a single segment. Allen had posted a turnover of Rs 25.21 crore in FY23, Rs 28.99 crore in FY22 and Rs 8.61 crore in FY21.
Further, Jaykay Enterprises also announced that its board has approved raising upto Rs 150 crore through rights issue of equity shares. It will issue 5,84,57,688 equity shares at Rs 25 per share at face value of Re 1 per equity share.
Jaykay Enterprises had posted a net loss of Rs 2.07 crore in the fourth quarter of FY 2022-23 in comparison to net loss of Rs 0.05 crore during the same period last year.