Axiscades Technologies, which had closed yesterday at Rs.383.50, opened itself today 5% higher at Rs.402.65, hitting its UC where it now stays frozen. Its 52-week high is at Rs.410.70.
The stock price hit the UC on its announcement that the Board has approved the 100% acquisition, in a phased manner, of add solution, GmbH, Germany, specializing in Automotive Solutions to Global OEMs.
The acquisition will be carried out through Axiscades GmbH, a wholly owned subsidiary of Axiscades. The cost of acquisition is Euro5.5 million.
add solution, GmbH is a Company based out of Wolfsburg, Germany which specializes in automotive design and development. They specialize in services such as wiring systems, software testing and automation for Global Automotive OEMs. The company recorded sales revenue of Euro 8.2 Mn in financial year 2022.
The Phase I acquisition, which is 94%, is expected to be completed by July 2023 and Phase II of balance 6% by March’25.
The company feels that this acquisition will provide a strategic foothold to Axiscades in the Automotive space, besides opportunity for firm contracts with marquee automotive OEMs. This will lead to significant offshoring opportunities and enhanced business for Axiscades in the automotive space, both in India and globally.