Craftsman Automation Limited has informed the stock exchanges about the conversion of securities held in its wholly-owned subsidiary Sunbeam Lightweighting Solutions Private Limited. The conversion involves Compulsorily Convertible Preference Shares (CCPS) and Optionally Convertible Debentures (OCDs) worth ₹97.60 crores being converted into equity shares of Sunbeam.

Board Approval and Conversion Details

The Board of Directors of Sunbeam Lightweighting Solutions Private Limited approved the conversion at their meeting held on December 19, 2025. The approval was based on a Conversion Request Notice submitted by Craftsman Automation Limited.

The conversion details are as follows:

Impact on Capital Structure

The conversion will result in an increase in the equity share capital of Sunbeam Lightweighting Solutions Private Limited. However, this corporate restructuring does not affect the ownership dynamics between the parent and subsidiary companies.

Shareholding Pattern Remains Unchanged

Despite the conversion of these financial instruments, Craftsman Automation's shareholding in Sunbeam will continue to remain at 100.00%. The company has clarified that this conversion does not result in any change in the overall shareholding pattern of Craftsman Automation in its subsidiary.

Regulatory Compliance

The announcement was made in compliance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has informed both BSE Limited and National Stock Exchange of India Limited about this corporate action.

Key regulatory details include:

Business Implications

This conversion represents a strategic financial restructuring within the Craftsman Automation group. By converting preference shares and debentures into equity shares, the subsidiary's capital structure becomes simplified while maintaining the same ownership control. The transaction demonstrates the company's focus on optimizing its subsidiary's financial architecture without diluting its ownership stake.

Craftsman Automation Limited , a prominent player in the Indian manufacturing sector, has made significant progress in its Chennai expansion plans through a strategic acquisition by its wholly-owned subsidiary, DR Axion India Private Limited.

Major Acquisition for Land Procurement

DR Axion India has entered into a Share Purchase Agreement on December 19, 2025, to acquire 100% equity shares of Suprash Developers Private Limited along with its wholly-owned subsidiary, Srikara Technologies Private Limited. This acquisition provides access to crucial land assets for the previously announced Chennai manufacturing plant.

Strategic Land Assets

The acquired Special Purpose Vehicles (SPVs) collectively own 52.83 acres of strategically located industrial land at Araneri Village, Sriperumbudur Taluk, Kancheepuram District. Both companies are primarily engaged in developing, leasing, and licensing of industrial projects, making them ideal vehicles for DR Axion's manufacturing expansion plans.

Original Expansion Plan Context

This acquisition directly supports the company's earlier announced expansion plan for establishing a new manufacturing plant in the Chennai Metropolitan Area with an estimated investment of ₹280.00 crore. The original expansion details include:

Corporate Structure Impact

Upon completion of the transaction, Suprash Developers will become a wholly-owned subsidiary of DR Axion India, while Srikara Technologies will become a step-down subsidiary. Consequently, both entities will fall under Craftsman Automation's corporate umbrella as step-down subsidiaries.

Industry Significance

This acquisition represents a crucial milestone in Craftsman Automation's capacity expansion strategy, addressing the full utilization of its existing Othappai facility in Thiruvallur. The secured land assets provide the necessary foundation for the company's anticipated growth in aluminium products demand across automotive and industrial sectors. The strategic location in Sriperumbudur, known for its robust industrial infrastructure and automotive manufacturing ecosystem, positions the company advantageously for future operations.