Dynamatic Technologies Limited has approved a preferential issue of 89,90,000 equity shares at ₹50 per share (including premium) to its wholly-owned subsidiary, Dynauton Limited. This move aims to raise ₹37.45 crore to fund Dynauton’s capital requirements, including R&D, autonomous technology systems, and UAV vertical acquisition. The transaction will result in Dynamatic Technologies’ shareholding in Dynauton reducing from 100% to approximately 83.33%.
Preferential Issue to Subsidiary Approved
The Board of Directors of Dynamatic Technologies Limited has approved a proposal for a preferential issue of 89,90,000 equity shares of face value ₹10 each to its wholly-owned subsidiary, Dynauton Limited. The issue price is fixed at ₹50 per share, which includes a premium of ₹40 per share, aggregating to a total investment of ₹37.45 crore (Rupees Thirty-Seven Crore Forty-Five Lakh Only).
Strategic Rationale and Capital Infusion
This capital infusion is intended to support Dynauton’s significant capital requirements. These include funding the Research and Development (R&D) of autonomous technology systems, hardware, and software, as well as the acquisition of the UAV Vertical. The funds will also bolster R&D related work-in-progress and inventories, crucial for the growth of this strategic business segment.
Shareholding Impact and Transfer of UAV Vertical
Following the preferential issue, Dynamatic Technologies Limited’s shareholding in Dynauton Limited is expected to decrease from 100% to approximately 83.33%. Dynauton will continue to operate as a subsidiary, with Dynamatic Technologies retaining control. The company is also proposing to transfer its entire UAV Vertical on a slump sale basis to Dynauton Limited. This includes R&D, intellectual property, contracts, and employees related to the UAV business.
Key Stakeholder Participation
The preferential issue includes subscriptions from:
- Dynamatic Technologies Limited: Will subscribe to 74,90,000 shares.
- Dr. Udayant Malhoutra (Promoter, CEO & MD): Will subscribe to 5,00,000 shares, reflecting his commitment to the venture.
- Dynauton ESOP Trust (to be formed): Will subscribe to 10,00,000 shares, aimed at incentivizing and retaining key talent.
Valuation and Pricing
The minimum issue price of ₹50 per share is based on a valuation report using the Net Asset Value method. The shares subscribed by Dynamatic Technologies Limited and Dr. Udayant Malhoutra are priced at ₹50 per share, while shares for the Dynauton ESOP Trust are priced at ₹10 per share, serving the objective of incentivizing and retaining key talent.
Source: BSE
