Coromandel International Ltd arm invests Rs. 204.24 crores in Dhaksha Unmanned Systems Pvt Ltd

The Board of Directors of Coromandel International Limited at its meeting held on June 29, 2023, considered and approved the acquisition of 32.68% equity stake in Dhaksha Unmanned Systems Private Limited (Dhaksha) by Coromandel Technology Limited, a wholly owned subsidiary of the company and sale and transfer of 18.34% equity stake in Dhaksha at cost by Dare Ventures Limited, a wholly owned subsidiary of the company, to Coromandel Technology Limited.

Post completion of the above transactions, the Company, through its wholly owned subsidiary, Coromandel Technology Limited, will hold 51.02% equity stake in Dhaksha, a leading drone manufacturing company.

The total cost of acquisition will be Rs. 204.24 Crores.

Dhaksha Unmanned Systems Private Limited (Dhaksha), incorporated in 2019 and headquartered in Chennai, is a leading player in drone space in India, providing complete range of Unmanned Aerial Systems (UAS) technology solutions across Agriculture, Defense, Surveillance and Enterprise applications. It also offers Remote Pilot training services. The company has been shortlisted under the Production-Linked Incentive (PLI) scheme for promoting the manufacturing of drones and drone components in the country in 2022 and is building a strong order book.

The investment in Dhaksha is in continuation with Coromandel's strategy to identify promising avenues of growth outside its core operations which would be value accretive for its shareholders. It will facilitate Coromandel's presence in the fast-growing UAS segment where drones and its applications are expected to exponentially grow and reach a global market size of $90 Billion by 2030. This investment follows the company's recent announcement of its entry into Specialty Chemicals and Contract Manufacturing (CDMO) businesses.

The Company's investment, through its wholly owned subsidiary, in Dhaksha also underscores its commitment to help Indian farmers access latest technologies in agriculture. The Company believes the drone technology will be a game changer in increasing the adoption of watersoluble fertilisers, liquid fertilisers, nano fertilisers, in addition to the crop protection products in India.

Shares of Coromandel International Limited was last trading in BSE at Rs. 937.80 as compared to the previous close of Rs. 936.30. The total number of shares traded during the day was 7810 in over 1012 trades.

The stock hit an intraday high of Rs. 951.00 and intraday low of 933.00. The net turnover during the day was Rs. 7353363.00.

Source : Equity Bulls

Keywords

CoromandelInternational INE169A01031 CoromandelTechnology Investment StakeIncrease DroneMaker DhakshaUnmannedSystems