Authum Investment & Infrastructure Limited has significantly increased its stake in Star Aerospace Limited, a move that aligns with its strategy of portfolio diversification and investment in sectors with growth potential. The company acquired an additional 8,34,082 equity shares of Star Aerospace for approximately ₹112 crore through cash consideration.

Acquisition Details

Authum's stake in Star Aerospace has now risen from 7.96% to 14.59% of the company's expanded equity share capital. This substantial increase comes as a result of two transactions:

1. Prior holding: 1,00,1000 equity shares (7.96% stake)
2. New acquisition: 8,34,082 equity shares (6.63% stake)

The acquisition was made at a price of approximately ₹134 per share, valuing the total investment at around ₹112 crore.

About Star Aerospace Limited

Star Aerospace Limited, established in 2015, is a subsidiary of an Indian multinational group headquartered in Dehradun, Uttarakhand. The company specializes in the design, development, and manufacturing of high-precision mechanical and electro-optical systems for aerospace and defense applications.

Key financial highlights of Star Aerospace:

Star Aerospace has a track record of supplying defense equipment to the Indian Armed Forces and has established a presence in the USA, Southeast Asia, and the Middle East.

Strategic Implications

Authum Investment & Infrastructure Limited stated that this acquisition aligns with their long-term strategy of diversifying their portfolio while investing in sectors that demonstrate both stability and growth potential. The company aims to nurture and expand this business, focusing on maximizing value creation for all stakeholders and ensuring a sustainable, profitable future.

Regulatory Aspects

The transaction does not fall under related party transactions and required no governmental or regulatory approvals. Authum Investment & Infrastructure Limited made the disclosure under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

This strategic move by Authum Investment & Infrastructure Limited reflects growing interest in the defense manufacturing sector, particularly in companies aligned with the Indian government's "Make in India" initiative. As Star Aerospace continues to expand its operations and global presence, this increased investment could potentially lead to further growth and development in the aerospace and defense manufacturing industry.

Authum Investment & Infrastructure Limited , a key player in the investment and infrastructure sector, has come under scrutiny as the Enforcement Directorate (ED) launched an enquiry at the company's premises. The investigation specifically pertains to matters related to Reliance Commercial Finance Limited and Reliance Home Finance Limited.

Company's Response

In response to the ED's enquiry, Authum has taken a proactive stance:

• The company has submitted relevant documentation to the authorities.
• Authum has expressed its commitment to respond to any additional queries with transparency.

Impact on Operations

Despite the ongoing enquiry, Authum Investment & Infrastructure Limited has made several assertions regarding its business continuity:

1. No Operational Impact: The company stated that this development does not affect its day-to-day operations.
2. Financial Performance Unaffected: Authum assured that its financial performance remains intact.
3. Strategic Direction Maintained: The long-term strategic plans of the company continue to be in place without any alterations.
4. Business Functionality: All aspects of Authum's business remain fully functional.

Company's Position

Authum Investment & Infrastructure Limited has emphasized two key points in light of this development:

1. Independent Operations: The company asserted that it operates independently with a clear governance structure in place.
2. Focus on Growth: Authum reaffirmed its commitment to long-term growth plans, indicating that the current enquiry has not deterred its future objectives.

As the situation unfolds, stakeholders and market observers will be closely monitoring any further developments in this matter. The company's transparent approach and assurances of uninterrupted operations may help in maintaining confidence among its investors and partners.