Ceinsys Tech Ltd, formerly known as ADCC Infocad Ltd, said its board of directors has approved a 100% stake buy in Zodius Capital-backed engineering services startup Allygrow Technologies Pvt Ltd for a little over Rs 68 crore in a mix of cash and stock deal, according to a stock exchange filing.
Ceinsys Tech will pay Rs 11.79 crore in cash to Allygrow, while the balance will be paid through issuance of as many as 36,07,530 equity shares of Ceinsys Tech at an issue price of Rs 156 a share, the company said in the regulatory filing. Equirus Capital acted as the financial advisor to Allygrow, while Kreo Capital Pvt Ltd acted as deal advisor to Ceinsys Tech.
Shares of Ceinsys Tech were locked in the 20% upper circuit on the BSE on Thursday.
“The recent acquisition of Allygrow expands our capabilities in the core engineering design, development and manufacturing engineering services. Allygrow expands on our ability to serve global clients across various industries with their core expertise in Automotive and aerospace engineering,” said Sagar Meghe, Non-Executive Director, Chairman, Ceinsys Tech.
Allygrow, founded by former Mahindra Engineering Services’ Chief Executive Officer Prashant Kamat, is a technology company, which focuses on engineering design, development and manufacturing engineering services. The company serves serves industries such as aerospace, automotive, hi-tech, heavy industries, and medical devices amongst others.
“This strategic partnership indeed is an important milestone in Allygrow's journey, which is in line with our growth strategy. We are excited at the prospect of leveraging the global expertise of both organizations and building a strong partnership based on state-of-the-art engineering skills,” said Kamat.
The technology-focussed private equity firm Zodius Capital Advisors, had led a $20 million round in Allygrow, back in 2015.
“It was a pleasure to be part of Allygrow’s journey since 2015 and seeing Prashant and team build a formidable organisation from grounds up. We are excited to remain partners for the journey ahead for the group and see what lies ahead,” said Neeraj Bhargava, Chief Executive Officer, Zodius Capital Advisors.
