Aurionpro announces strategic deal in Smart Transit segment

Aurionpro Solutions Ltd ('Aurionpro') has entered into a definitive agreement for acquisition of majority stake (51%) in Toshi Automatic Systems Pvt. Ltd. ('TASPL'), a Ghaziabad, Uttar Pradesh based company and an innovator with products and solutions in Industrial, Public Safety, Mass Transit segments. TASPL is a leading manufacturer & supplier of automatic gates required in BRTS, Metro and Airport Transit projects and has a large manufacturing plant at Ghaziabad, Uttar Pradesh. It has an established track record of successfully manufacturing, delivering, commissioning and servicing multiple projects in the Public Transportation Domain.

Aurionpro shall acquire majority stake (51%), in tranches upto June 2022, through combination of subscription and acquisition i.e partly by subscription of fresh equity to be issued by TASPL and partly by acquiring the equity stake from existing shareholders. The company will subsequently be renamed as Aurionpro Toshi Automatic Systems Pvt. Ltd. ("ATASPL") after acquisition. The transaction will be funded through internal accruals.

Mr. Paresh Zaveri, Chairman & MD, Aurionpro, while announcing the acquisition stated that "Aurionpro is a preferred solutions provider in the smart mobility segment and with the recent spate of wins in India & various parts of the world Aurionpro is poised for aggressive growth in this segment. The acquisition of TASPL will allow Aurionpro to further consolidate its position as the only integrated player in Automatic Fare Collection ("AFC") & transit solutions space in India. With major thrust on 'Make in India', we see enormous benefit for the combined strength of Aurionpro & TASPL. Additionally, we will have centralized manufacturing capabilities for both KIOSKs & transit Products like Automated Flap Gates, Ticket Vending Machines, Public Safety Doors for metro and high speed train stations and Turnstile and Flap Gates for Bus and Neo Metro stations. Further, this acquisition will also provide Aurionpro with substantial cost advantage, reduced supply chain risks & high scalability in the business and will also help in enhancing data Centre business, especially with fire safety gates and junction box that TASPL manufactures."

Sanjeev Sachdev, Managing Director - TASPL, said that "We have been in the Automation domain for the last 3 decades and took a leap into the Smart Transit space over 10 years ago with our first BRTS project in Ahmedabad, followed by some more prominent projects like in Amritsar. Today, our dream came true to have the platform for manufacturing AFC, TVM and PSD. The alliance with Aurionpro marks a true turning point for TASPL. With Aurionpro's strong domain expertise & global experience, I am now confident that Aurionpro Toshi Automatic Systems Pvt Ltd will set the stage for strong growth going ahead.

Shares of Aurionpro Solutions Limited was last trading in BSE at Rs. 217.25 as compared to the previous close of Rs. 206.95. The total number of shares traded during the day was 11827 in over 730 trades.

The stock hit an intraday high of Rs. 217.25 and intraday low of 207.00. The net turnover during the day was Rs. 2520871.00.

Source : Equity Bulls

Keywords

AurionproSolutionsLimited INE132H01018 Acquisition ToshiAutomaticSystems MassTransit