Craftsman Automation has announced a significant expansion move through its subsidiary Dr Axion, which will acquire Suprash Developers for ₹145.85 crore. This strategic acquisition is aimed at establishing a new manufacturing facility in Chennai, marking Craftsman Automation's continued growth in the southern Indian market.

Acquisition Details

The transaction involves Dr Axion, a subsidiary of Craftsman Automation, purchasing Suprash Developers to facilitate the creation of manufacturing infrastructure in Chennai. The deal structure and key parameters are outlined below:

Strategic Expansion Initiative

This acquisition represents Craftsman Automation's strategic approach to expanding its manufacturing capabilities in key industrial locations. The Chennai facility will add to the company's existing operational network, potentially enhancing its service delivery and production capacity in the region.

The investment of ₹145.85 crore demonstrates the company's commitment to strengthening its presence in Tamil Nadu's industrial landscape. Chennai, being a major automotive and industrial hub, offers strategic advantages for manufacturing operations.

Subsidiary Operations

Dr Axion, as the acquiring subsidiary, will be responsible for the development and operation of the new manufacturing facility. This structure allows Craftsman Automation to leverage specialized subsidiary expertise while maintaining strategic oversight of the expansion project.

The acquisition of Suprash Developers provides the necessary foundation for establishing the manufacturing infrastructure, indicating a comprehensive approach to facility development in the Chennai market.

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.