Aeroflex Enterprises Limited – Acquisition of M.R. Organisation Limited

Date: 21 April 2026
Announcement Type: Regulation 30 Restructuring – Acquisition

Transaction Overview

• Acquirer: Aeroflex Enterprises Limited (self‑listed entity)
• Target: M.R. Organisation Limited (MRO & tech‑based last‑mile utility services)
• Existing Stake: ~64% (0.64)
• Additional Stake Acquired: ~4% (0.04) – raising total holding to 68%
• Consideration: Cash – ₹55,757,325 (≈ 5.58 cr)
• Completion Target: 22 April 2026 (next‑day settlement)
• Board Approval: 31 Jan 2025 (related‑party transaction, deemed non‑material)
• Regulatory Approvals: None required

Target Company Highlights

• Industry: Tech‑based last‑mile utility services, air‑compressor parts & kits, MRO solutions
• Geographic Presence: India (29 states, 59 locations, 5 warehouses), UK, USA, Belgium, Portugal (exports to 75 countries)
• Financials (FY 2024‑25):
  • Turnover: ₹782.4 million
  • Profit After Tax: ₹166.5 million
  • Net Worth: ₹603.8 million
• Incorporation: 5 Apr 2013

Strategic Rationale

• Vertical Integration: Adds a robust MRO capability and air‑compressor product line to Aeroflex’s portfolio.
• Geographic Expansion: Immediate access to a global footprint and export network, enhancing cross‑border sales.
• Synergy Potential: Opportunities for cost efficiencies, shared logistics, and cross‑selling to existing Aeroflex customers.
• Favorable Valuation: Cash outlay represents < 10 % of the target’s net worth and < 4 % of its annual turnover, indicating a highly attractive purchase price.

Financial Implications

• Cash Impact: Minimal – ₹55.8 million outflow, easily absorbed by Aeroflex’s liquidity.
• Earnings Accretion: Given the target’s strong PAT, the acquisition is expected to be earnings‑accretive once integration is complete.
• Balance‑Sheet Effect: Increase in investment assets; net worth of target will bolster consolidated equity.

Risks & Considerations

• Integration Risk: Aligning operations, IT systems, and corporate culture across multiple geographies.
• Related‑Party Scrutiny: Although classified as non‑material, investors should monitor any future related‑party disclosures.
• Market Conditions: Dependence on industrial demand for air‑compressor and MRO services, which can be cyclical.

Outlook for Investors

The acquisition positions Aeroflex to capture higher margins in the growing MRO sector and to leverage the target’s international network. With a modest cash commitment and strong underlying profitability of M.R. Organisation, the move is expected to enhance revenue diversification and long‑term shareholder value. Investors should watch for integration updates and any subsequent related‑party disclosures.

Prepared on 21 April 2026