Concord Control Systems Ltd approves acquisition of Advanced Rail Controls Pvt Ltd

The Board of Directors of Concord Control Systems Limited ("the Company") at their meeting held today on May 02, 2024, have approved the Investment to acquire 66.66% Equity Shares of Advanced Rail Controls Private Limited (ARC) (CIN: U05190KA2005PTC035612) having its registered office at P No.114 Aerospace sector, Hitech defense and Aerospace Park, Jala Hobli, Bangalore, Bangalore, Karnataka, India, 562149 ("the target company") against the consideration of around Rs. 700 lakhs. With the proposed acquisition, the target company shall become a Subsidiary Company of Concord Control Systems Limited. This shall enable the Company to enhance its railway electronics portfolio.

The Company is a Research Design and Standards Organisation ("RDSO") approved vendor, engaged in the business of manufacturing and supply of coach related and electrification products for Indian Railways and other Railway Contractors and manufacture the products required in railway coaches, electrification of coaches and broad-gauge network of Indian Railways.

The target company was established in the year 2005 in Bangalore (India) and has been working in various niche areas of rolling stock technology. The company focuses on developing high end embedded control solutions for rail domain and is peerless in its spectrum of working. The vision of the company is to develop cost effective and globally competing technologies for Railway Rolling Stocks through in house R&D. In future, the company envisions to grow and develop modern power conditioning & control technologies needed for the rolling stocks used in various types of guided transportation to meet primarily the future demands of developing India in a most energy efficient, environment friendly and human safety way.

Advanced Rail Controls Pvt. Ltd. (ARC), headquartered in Bangalore, is a globally renowned company specializing in traction control electronics and consultancy since 2005. Notably, it designed and successfully operated a distributed wireless control system, powering the longest freight train run by Indian Railways, utilizing six locomotives and delivering 36,000 hp of traction power. The company's products have gained recognition for their benchmark quality from various global train manufacturers and railroad operators.

Concord Control Systems Ltd., in its endeavour to enhance its railway electronics portfolio, has acquired 66.66% stake in Advanced Rail Controls Pvt. Ltd., Bengaluru. Leveraging synergies between the two entities, Advanced Rail Controls Pvt. Ltd. will expand its product portfolio to meet global market demands alongside existing Indian requirements.

ARC currently has a very vibrant order book of roughly Rs. 140 crores which are to be executed over a period of 24 months. With the active synergies of both the company we are very sure of delivering it on time.

Shares of Concord Control Systems Limited was last trading in BSE at Rs. 737.95 as compared to the previous close of Rs. 723.30. The total number of shares traded during the day was 10250 in over 41 trades.

The stock hit an intraday high of Rs. 745.00 and intraday low of 722.50. The net turnover during the day was Rs. 7567237.00.

Source : Equity Bulls

Keywords

ConcordControlSystems INE0N0J01014 IndustrialProducts Acquisition AdvancedRailControls