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NRB Bearing Subsidiary to Acquire Mahant Tool Room for INR 27.50 Crore
NRB Bearing's wholly owned subsidiary, Mahant Tool Room Private Limited, has agreed to acquire the business of Mahant Tool Room (MTR) for a fixed cash consideration of INR 27.50 crore. This acquisition marks NRB Bearing's strategic entry into the aerospace industry, specifically in precision machined components for engine and fuel systems. Although MTR's FY25 turnover was relatively small at INR 1.88 crore, the business comes with a substantial confirmed order book of over INR 25 crore. The deal also includes additional milestone-based payments over the next three years, aligning future payouts with performance.
Key Highlights
Acquisition of MTR business for a fixed cash consideration of INR 27.50 crore plus milestone-based payments.
Strategic entry into the aerospace sector for manufacturing precision machined components.
Target entity brings a confirmed order book exceeding INR 25 crore, significantly higher than its FY25 turnover of INR 1.88 crore.
Transaction expected to be completed within 3 months from the agreement date.
MTR has shown consistent turnover growth from INR 1.11 crore in FY23 to INR 1.88 crore in FY25.
💼 Action for Investors
Investors should monitor the company's ability to scale the aerospace business given the large order book relative to current revenue. This diversification into high-precision engineering is a long-term positive for the company's margin profile.