Rajya Sabha Member and entrepreneur Mr Rajeev Chandrasekhar has restructured his aerospace and defence business by merging three group companies into a single Rs 500-crore-plus Axis Aerospace & Technologies.
The three are the BSE-listed software company Axis IT & T of Delhi; Bangalore-based engineering solutions entity CADES Digitech; and their holding company Tayana Digital P. Ltd. All are promoted by Mr Chandrasekhar's Jupiter Capital.
The merger will be effective from April 1, 2011, subject to the approval of the High Courts and other statutory requirements, a joint press release issued on behalf of the three companies and Jupiter Aviation Services said on Tuesday.
“(The merger) will make Axis Aerospace and Technologies (AAT) one of the leading aerospace and defence technology companies in India,” it said.
On receiving the necessary approvals, AAT would be listed on the BSE and NSE; shareholders of Axis IT&T would continue to hold shares of the resultant listed entity.
One share of AAT of face value of Rs 4 each has been recommended for every share of Axis IT&T of face value Rs 5 each.
The promoter holding will now change to 80.38 per cent and this would be subsequently diluted to 75 per cent as per listing regulations, the release said.
Mr S. Ravi Narayanan, Chairman and CEO, said the proposed structure was meant to provide a holistic solution in aerospace and defence technology businesses “so that we become the first choice partners to global majors.” AAT, through its constituents, has over 60 customers including EADS/Airbus, Boeing and Fokker, among others. CADES is one of the two preferred partners in the country for Airbus programmes.
Mr Sudhakar Gande, Vice-Chairman, said the combined entity would have about 1,600 employees. This completed the first phase of integrating AAT's acquisitions. PwC, Bangalore, was advisor for the restructuring.