AXISCADES Announces implementation of Strategic Plan; Transfers Engineering Services practice

AXISCADES Technologies Limited (BSE: 532395 | NSE: AXISCADES) - one of India's leading aerospace and technology engineering and manufacturing companies - today announced implementation of its strategic plan: the transfer of its Engineering Services practice catering to Heavy Engineering, Energy and Automotive verticals, to Akkodis, a leading global digital engineering consulting company. This transaction represents the first concrete step in AXISCADES' planned transition from a services-led organization to a focused aerospace manufacturing and products-led platform - a transformation the Company has signaled to its shareholders consistently over the past four quarters.

Transaction Highlights

- Buyer: Akkodis, a global leader in digital engineering consulting services, with 40,000+ engineers and digital experts in 30+ countries.

- Scope: 100% of AXISCADES' Engineering Services practice catering to Heavy Engineering, Energy and Automotive verticals.

- Consideration: Approximately US$30.63 million, including additional performance-based earnout, payable in cash over a multi-year period.

- Closing: Expected in Q3 2027, subject to applicable regulatory clearances and customary completion conditions and adjustments.

- Strategic rationale: Beginning of the planned services-to-manufacturing transition. Crystallises value from the Engineering Services practice, releases capital and management bandwidth for redeployment into AXISCADES' aerospace and product platforms.

- Use of proceeds: Deployment in support of AXISCADES' Power 930 strategic roadmap -manufacturing infrastructure scale-up (DAC, MAC), strategic capability acquisitions in core growth areas, and balance sheet strengthening.

Strategic Context - Beginning of a Planned Transformation

Over the past four quarters, AXISCADES has consistently communicated to its shareholders and to the market, its intent to transition the Company from a services-led model toward a focused aerospace manufacturing and products-led platform. Today's announcement is the beginning of that transition - crystallizing value from the Engineering Services practice while releasing capital and management bandwidth for redeployment into the higher-margin, higher-growth core platforms of aerospace engineering, aerospace manufacturing, MRO and Electronics, Sensors and AI (ESAI) proprietary solutions.

The Company's Power 930 strategic ambition remains firmly on course. The proceeds from this transaction provide a disciplined capital pool to accelerate the build-out of the Devanahalli Atmanirbhar Complex (DAC), the Missile Atmanirbhar Complex (MAC) and the Company's pipeline of strategic acquisitions in higher-margin products and manufacturing capabilities.

In Akkodis, the transferred Engineering Services practice gain a natural global home with the scale, multigeography delivery infrastructure and customer reach to take these businesses to their next phase of profitable growth, serving clients across complex, high-value digital engineering programs. Employees aligned with the transferred businesses are expected to move with them, strengthening Akkodis' capabilities in Heavy Engineering, Energy and Automotive, and benefiting from enhanced global career opportunities. Both the employee and customer program will be transitioned with continuity and care.

Dr. Sampath Ravi Narayanan, Founder, Chairman and Managing Director, AXISCADES Technologies Limited, "This transaction is the beginning of the strategic transformation we have been signaling to our shareholders over the past four quarters - our transition from a services-led organization to a focused aerospace manufacturing and products-led platform. By transferring our Engineering Services practice - Heavy Engineering, Automotive and Energy - to Akkodis, we crystallize meaningful value and we sharpen the Company's focus on the platforms that will define our Power 930 ambition. We are pleased to have found in Akkodis the right global home for these practices - a partner with the scale, depth and integrity to honour the customer relationships and engineering talent which has been built over many decades."

Shares of AXISCADES Technologies Limited was last trading in BSE at Rs. 2044.85 as compared to the previous close of Rs. 1994.00. The total number of shares traded during the day was 6961 in over 723 trades.

The stock hit an intraday high of Rs. 2086.00 and intraday low of 1988.30. The net turnover during the day was Rs. 14160731.00.

Source : Equity Bulls

Keywords

AXISCADESTechnologies INE555B01013 EngineeringServices Transfer Akkodis