Airfloa Rail Technology has signed a memorandum of understanding (MOU) with KIN Railway Equipment Private Limited to acquire its Coimbatore business for ₹48 crore. The transaction includes an existing order book of ₹180 crore, strengthening the company’s position in metro interiors and coach manufacturing.

The Board of Directors approved the move on August 27, 2026, following recommendations from the Audit Committee. The disclosure was made pursuant to Regulation 30 read with Schedule III Part A of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, on September 14, 2026.

Transaction Structure and Consideration

The proposed acquisition involves purchasing KIN’s business as a going concern or through an itemized asset purchase. The structure will be determined after satisfactory due diligence and valuation. The total purchase price of ₹48 crore, exclusive of taxes, covers assets, qualifications, certifications, intellectual property, inventory, and customer relationships. The transaction will be funded through a combination of debt and internal accruals.

Strategic Rationale

The acquisition aims to expand Airfloa’s capabilities in the railway and transportation equipment sector. Specifically, it strengthens the company’s position in metro interiors and coach manufacturing segments while expanding its reach across domestic and export markets. The deal enhances manufacturing capacity, technical capabilities, and execution strength, enabling participation in larger and more complex railway and metro projects.

KIN Railway Equipment Private Limited has established capabilities in metro rail, rolling stock, coach interiors, and railway equipment segments. Based in Coimbatore, Tamil Nadu, the target firm brings access to manufacturing infrastructure and technical qualifications.

Conditions and Timeline

The deal remains at the evaluation stage and is subject to several conditions precedent. These include mutually acceptable valuation, completion of due diligence, and receipt of requisite regulatory approvals. The seller’s board or shareholders must also approve the transaction where applicable. Definitive timelines will be established upon signing the final agreement.

The company confirmed that KIN Railway Equipment Private Limited is an unrelated entity. The promoter group and group companies hold no interest in the target firm.

Airfloa Rail Technology will hold its 27th Annual General Meeting on Monday, September 28, 2026, at 11:30 am via video conferencing.

The Chennai-based company announced the dispatch of the notice convening the meeting along with the annual report for the financial year ended March 31, 2026. Members whose email addresses are registered with the company or depositories have received the documents electronically.

Key Agenda Items

The ordinary business includes the adoption of audited standalone and consolidated financial statements for FY26. Additionally, shareholders will vote on the reappointment of Mr. Venkatesh Sathishkumar as a director. He retires by rotation and offers himself for re-appointment.

Special business items involve the ratification of remuneration for cost auditors and the appointment of secretarial auditors.

Auditor Appointments and Fees

Shareholders are requested to ratify the remuneration payable to M/s. SVM & Associates for conducting the cost audit for FY27. The approved fee is ₹1,00,000 plus applicable taxes and reimbursement of out-of-pocket expenses.

The board also seeks approval for appointing M/s. SKD & Associates as secretarial auditors for five consecutive years from FY26 to FY30. This voluntary compliance aims to strengthen corporate governance under SEBI Listing Regulations.

Voting Details

KFin Technologies Limited has been appointed to provide remote e-voting facilities. The eligibility cut-off date is Monday, September 21, 2026. Remote e-voting begins on Friday, September 25, 2026, at 9:00 am and ends on Sunday, September 27, 2026, at 5:00 pm.

Members can participate in the virtual meeting 15 minutes before and after the scheduled start time. Large shareholders holding 2% or more shareholding can attend without restriction.