Unimech Aerospace and Manufacturing Limited has completed the first tranche of capital infusion into its joint venture with Yusuf Bin Ahmed Kanoo Company Limited. The company invested SAR 15.30 million (approximately ₹39.36 crore) to secure a controlling 51% stake in Kanoo Unimech Advanced Manufacturing Solutions.

This investment represents Unimech's proportionate share of the initial funding round totaling SAR 30 million. The joint venture, incorporated on December 18, 2025, aims to establish a greenfield advanced machining and remanufacturing facility in Dammam, Saudi Arabia. Following this equity subscription, the entity will operate as a subsidiary of Unimech.

Joint Venture Structure and Funding

The capital infusion was executed pursuant to the Joint Venture Agreement signed in January 2026. The first tranche consisted of a total commitment of SAR 30 million, split between the two partners based on their equity holdings. A second tranche of equal value is scheduled for subsequent infusion.

Strategic Objectives and Market Focus

The joint venture targets upstream oil and gas, utilities, defense, and mining sectors. The primary objective is to address the growing localization demand for precision engineering services in the region. The facility will focus on advanced machining and remanufacturing, leveraging Unimech’s expertise in aerospace and manufacturing technologies.

The transaction does not constitute a related party transaction, and no governmental or regulatory approvals were required beyond standard incorporation procedures. The acquisition is expected to be fully completed following the conclusion of the second funding tranche.

Operational Timeline and Management Commentary

The JV facility is expected to commence commercial production by late March 2027 or early April 2027. This timeline establishes a local manufacturing platform for precision-engineered components, supporting Unimech's participation in the growing industrial and energy ecosystem in Saudi Arabia.

Anil Kumar, Chairman and Managing Director of Unimech Aerospace and Manufacturing Limited, stated that the first tranche marks an important milestone in establishing the company's manufacturing presence in the Middle East. He noted that with a total planned equity capital of SAR 60 million and a 51% stake, the company is committed to building a meaningful local presence to serve regional customers and participate in long-term opportunities emerging from Saudi Arabia's Oil & Gas and industrial ecosystem.

What the Numbers Show

Unimech’s investment of SAR 15.30 million establishes immediate control over the new entity, converting it into a subsidiary despite the business yet to commence operations (NIL turnover). The structure indicates a phased capital deployment strategy, with half of the total committed capital (SAR 60 million authorized share capital) injected upfront to fund initial setup and licensing, while retaining flexibility for future scaling through the second tranche.

Unimech Aerospace and Manufacturing Limited promoter Preetham S V created an encumbrance on 1,87,500 equity shares on September 29, 2026. The pledge was made in favor of 360 One Distribution Services Limited to secure loans.

This disclosure was submitted to the National Stock Exchange and BSE under Regulation 31(1) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. The filing confirms that the shares were pledged for the purpose of obtaining financial facilities.

Promoter Holding Details

Preetham S V holds a total of 48,71,194 equity shares in the company, representing 9.57% of the total share capital. Prior to this transaction, none of his holdings were encumbered.

Encumbrance Specifics

The creation of the encumbrance resulted in 1,87,500 shares being marked as pledged, which accounts for 0.37% of the company's total share capital. This action increases the promoter's encumbered position from zero to this specific quantity.

The regulatory submission highlights that the pledge is a standard mechanism for promoters to leverage their equity holdings for debt financing. The disclosure ensures transparency regarding the promoter's liability structure and potential dilution risks associated with such encumbrances.