Millworks Technologies has acquired a controlling 67% stake in Vidwan Aeronautics Private Limited by converting an outstanding loan into equity shares. The transaction, approved by the board on August 31, 2026, makes the Bengaluru-based aerospace component manufacturer a subsidiary of Millworks.

The acquisition involves the subscription of 15,22,727 equity shares at an issue price of ₹18.05 per share. This converts the total outstanding loan amount of ₹2,74,85,222.35 into equity capital, resulting in no cash outflow for Millworks Technologies.

Transaction Details

The deal consolidates Vidwan Aeronautics under Millworks’ group structure. The target entity, incorporated in April 2017, specializes in manufacturing high-precision aerospace engine components.

Vidwan Aeronautics reported a turnover of ₹2.02 crore for FY26. The company’s revenue has grown from ₹64 lakh in FY24 to ₹1.42 crore in FY25. The acquisition is expected to be completed by September 30, 2026, subject to statutory compliances.

What the Numbers Show

The conversion of debt into equity at ₹18.05 per share implies a post-money valuation for Vidwan Aeronautics of approximately ₹4.1 crore, based on Millworks’ 67% stake representing ₹2.75 crore. This structure allows Millworks to gain strategic participation in the aerospace supply chain without impacting its immediate cash reserves, while Vidwan Aeronautics strengthens its balance sheet by eliminating debt obligations.

Millworks Technologies disclosed that Pace Stock Broking Services Private Limited, along with its Person Acting in Concert (PAC), Shine Star Build-Cap Private Limited, reduced their aggregate shareholding in the company by more than 2% through open market transactions.

The reduction was triggered on August 21, 2026, prompting the acquirer to file a disclosure under Regulation 29(2) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. The transaction involved both purchase and sale activities between July 27, 2026, and August 21, 2026, resulting in a net decrease in voting rights held by the group.

Shareholding Changes

Before the transactions, the acquirer and its PAC held 11,16,800 equity shares, representing 6.34% of the total voting capital of Millworks Technologies. Following the open market sales, their holding dropped to 6,92,800 shares, or 3.93% of the total voting capital.

The net reduction of 4,24,000 shares constitutes a 2.41% decrease in the total diluted share capital of the target company. No encumbrances, pledges, or convertible securities were involved in these transactions.

Regulatory Details

Millworks Technologies has an equity share capital of 17,614,755 shares with a face value of ₹10 each. The total voting capital remained unchanged after the transaction. The acquirer confirmed that neither Pace Stock Broking Services nor Shine Star Build-Cap belongs to the promoter group of the target company.

The disclosure was signed by Atul Goel, Director of Pace Stock Broking Services, and Naveen Saini, CEO of Shine Star Build-Cap Private Limited, on August 25, 2026.