Suyog Telematics Limited to acquire Lotus Tele Infra Private Limited

Suyog Telematics Limited is pleased to announce that it has signed a Memorandum of Understanding (MOU) with Lotus Tele Infra Private Limited, its existing promoters, and shareholders for the acquisition of 100% of the equity share capital of Lotus Tele Infra Private Limited. The aggregate consideration for this acquisition is INR 13.5 Crores (Indian Rupees Thirteen Crores and Fifty Lakhs Only), which will be payable by the Company in a lump sum as per the terms of the MOU, in accordance with the Companies Act, 2013, and other applicable laws, as well as subject to any required regulatory or statutory approvals.

The acquisition is contingent upon the fulfilment of certain customary condition precedents and the execution of definitive agreements. Upon completion of the acquisition, Lotus Tele Infra Private Limited will become a wholly owned subsidiary of Suyog Telematics Limited.

Key Acquisition Details:

Target Company: Lotus Tele Infra Private Limited

Consideration Amount: INR 13.5 Crores (INR 5 Crores payable at the time of signing the MOU and INR 8.5 Crores payable upon signing the Share Purchase Agreement)

Completion Timeline: The acquisition is expected to be completed on or before March 31, 2025.

Post-Acquisition: Lotus Tele Infra will become a wholly owned subsidiary of Suyog Telematics Limited

Commenting on the update, Mr. Shivshankar Lature, Managing Director, said "We are excited to announce the acquisition of Lotus Tele Infra Private Limited, a strategic move that strengthens our position in the telecom infrastructure industry. This acquisition will enhance our service offerings by integrating Lotus Tele Infra's 120 telecom sites in Delhi and NCR into our operations, providing us with greater opportunities for growth and efficiency. Lotus Tele Infra's strong performance and established presence make it an ideal addition to Suyog Telematics.

Additionally, we are pleased to share that we are raising INR 270.75 Crores (INR 100.00 Crores from the Promoter category through the issuance of fully convertible equity warrants and INR 170.75 Crores from the Non-promoter category through the issuance of equity shares). This fund raise will provide us with the financial flexibility to accelerate our expansion initiatives, enhance our infrastructure, and strengthen our operational capabilities.

This acquisition and fund raise align with our long-term growth strategy, and we are confident they will deliver significant value for our stakeholders. We look forward to completing the acquisition by March 2025 and successfully integrating Lotus into our business."

Shares of Suyog Telematics Ltd was last trading in BSE at Rs. 1790.40 as compared to the previous close of Rs. 1860.70. The total number of shares traded during the day was 4553 in over 546 trades.

The stock hit an intraday high of Rs. 1852.95 and intraday low of 1779.35. The net turnover during the day was Rs. 8277542.00.

Source : Equity Bulls

Keywords

SuyogTelematics INE442P01014 MOU LotusTeleInfra Acquisition LotusTeleInfra