Uravi T&W Expands into Defence with 55% Stake in SKL India

Uravi T and Wedge Lamps Ltd has announced its acquisition of up to 55% stake in SKL (India) Pvt Ltd. The deal, worth Rs 20 crore, will be executed in multiple tranches over a period of 24 months. SKL India specializes in power systems and defence equipment, and the acquisition marks Uravi's entry into the defence sector.

Uravi T and Wedge Lamps Ltd, a notable manufacturer of LED lamps for automotive and household applications, has announced its strategic acquisition of up to 55% stake in power systems and defence equipment maker SKL (India) Pvt Ltd for approximately Rs 20 crore. The agreement is set to be executed in several tranches, beginning with a 43.91% stake acquisition in the first phase, followed by a 6.1% acquisition in the second phase, and concluding with the remaining stake.

This acquisition represents Uravi's foray into the defence sector, as highlighted in their official statement. According to the company, SKL India's established presence and reasonable valuation were key factors in the deal. SKL India, known for designing and manufacturing power systems and special-purpose defence equipment, generated Rs 20.2 crore in revenue for the 2023-24 fiscal year.

Uravi, which reported a 23% growth in total income amounting to Rs 42.68 crore for the 2023-24 financial year, aims to leverage SKL India's expertise to expand its market reach. The completion of the acquisition is expected within 24 months from the end of the first tranche.

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