Megasoft Limited , an Indian technology company, has made a significant move to expand its presence in the aerospace and defence sector. The company's wholly-owned subsidiary, Sigma Advanced Systems UK Ltd, has signed an agreement to acquire a 100% stake in Nasmyth Group Ltd, a UK-based precision engineering firm, for ₹213 crore (approximately £17.80 million) in cash.

Acquisition Details

The acquisition, announced on October 28, 2025, is expected to complete within four weeks, subject to certain conditions. This strategic move provides Megasoft with a global platform in the aerospace and defence sector, aligning with the company's strategy for inorganic growth.

About Nasmyth Group

Nasmyth Group, incorporated in England and Wales, specializes in complex precision engineering, manufacturing, and advanced metal treatments. The group operates multiple manufacturing facilities in the UK and one in India, serving marquee OEM customers in the aerospace and defence sectors.

Financial Performance

Nasmyth Group has shown consistent growth over the past three years:

This acquisition is expected to enable Megasoft to rapidly scale up its operations in the aerospace and defence sector.

Market Response

The news of the acquisition has been well-received by the market. Megasoft's shares hit the 5% upper circuit, closing at ₹185.43. The stock has shown remarkable performance in 2025, surging over 110% year-to-date.

Regulatory Compliance

Megasoft has obtained the necessary approvals under the National Security and Investment Act, UK, for this acquisition. The company has also made the required disclosures to the stock exchanges in compliance with SEBI regulations.

This strategic move by Megasoft demonstrates the company's ambition to expand its footprint in the high-value aerospace and defence sector, potentially opening up new growth opportunities in the global market.

Megasoft Limited , a prominent player in the technology sector, has taken a significant step towards expanding its global footprint. The company's Board of Directors has approved a loan agreement with its wholly owned subsidiary, Sigma Advanced Systems UK LTD, for up to £20 million (approximately ₹240 crores).

Strategic Move for Aerospace and Defense Sector Expansion

The loan facility, to be disbursed in one or more tranches, is aimed at enabling the subsidiary to pursue potential acquisitions in the Aerospace and Defense sectors in the US and UK. This move aligns with Megasoft's strategic growth plans, potentially strengthening its position in these high-value industries.

Key Terms of the Loan Agreement

The loan agreement comes with the following terms:

Implications and Compliance

While the transaction qualifies as a related-party transaction, Megasoft has emphasized that it is being conducted at arm's length. This approach ensures transparency and fairness in the deal structure.

The company's decision to provide this substantial loan to its UK subsidiary underscores its commitment to international expansion and diversification. By focusing on the Aerospace and Defense sectors, Megasoft is positioning itself to tap into industries known for their technological sophistication and growth potential.

Market Response and Future Outlook

As Megasoft takes this strategic step, market observers will be keenly watching how this move translates into tangible growth and value creation for the company. The success of potential acquisitions in the US and UK markets could significantly enhance Megasoft's global presence and technological capabilities.

Investors and stakeholders may be interested in further details about the specific acquisition targets and how they align with Megasoft's long-term vision. As the company moves forward with this initiative, it will be crucial to monitor its execution and the impact on Megasoft's financial performance and market position.

This development marks a pivotal moment for Megasoft, potentially setting the stage for a new phase of growth and expansion in the international Aerospace and Defense sectors.