Uravi Defence & Technology Ltd acquires stake in UK Based SPAFAX International Holdings / SPAFAX International Ltd

Uravi Defence & Technology Limited (NSE Code: URAVI, BSE Code: 543930), one of the leading manufacturer and supplier of incandescent and wedge -based automotive lamps, is pleased to announce the company has plan to acquire 100% equity stake in SPAFAX International Ltd, a reputed UK based company through its holding company known for its high-performance Automotive Defence solutions. The proposed investment has been executed through Bharat Technology Ltd, a wholly owned subsidiary of Uravi Defence & Technology Ltd. Looking ahead, Uravi intends to gradually increase its ownership in SPAFAX through a phased acquisition strategy. The plan involves acquiring majority stake in 2026 and execute acquisition spread in multiple tranches.

Founded in 1938, SPAFAX International Ltd has built a long-standing legacy of excellence, pioneering innovation in the design and manufacturing of unbreakable vehicle mirrors, mirror arms, advanced lighting systems, audio warning technologies, specialty lenses, and IP69K-rated wireless explosion-proof camera systems. These solutions cater to a broad spectrum of industries, including Defence armoured and Special purpose vehicles, agriculture, commercial trucks, motorsports, Public Transport services etc.

In FY25, SPAFAX has reported an approximate unaudited Total Revenue of ₹ 29 Crore & PAT of ₹ 5 Crore.

SPAFAX's patented unbreakable mirror technology, backed by a 10-year guarantee, is trusted globally by OEMs and fleet operators for its unmatched durability and performance in extreme conditions. Its high-visibility, high-strength solutions-like the lightweight yet robust T6 Series mirror arms-are tailored for defence and transport sectors. Notably, the VM2 and VM3 Series mirrors are fitted as standard on the British Army's Land Rover Defenders and their successors, making them a critical safety feature for 4x4 and off-road military vehicles.

Some of the key clients of SPAFAX includes various UK, NATO, EU and various global Defence organisation, as well as operators of airport ground support equipment and specialty vehicle fleets.

The deal aligns well with the evolving trade landscape, especially following the recently signed India-UK Free Trade Agreement (FTA). The FTA is expected to facilitate zero-duty access to European markets, enabling Indian manufacturers to scale exports, access newer geographies, and increase competitiveness.

One of the key beneficiaries of this partnership will be SKL India Pvt Ltd, an integral entity of the Uravi Group. With access to cutting-edge technologies and expanded market reach, SKL India will gain significant momentum in enhancing its production capabilities, launching innovative products, and driving exports. Following this agreement, Uravi Defence & Technology Ltd is poised to unlock opportunities for backward integration and potentially pave the way for exports by fulfilling Spafax 's requirements through its Indian operations.

Commenting on this acquisition, Mr. Niraj Gada, Managing Director and CEO said, "We are excited to announce our strategic investment in SPAFAX, a legacy brand known for its innovative and robust automotive safety solutions. This acquisition marks a significant step towards our vision of technological advancement and global integration.

With the recent Indo-UK Free Trade Agreement opening new export avenues, this partnership will not only enhance our Defence portfolio through backward integration but also create strong synergies with SKL India Pvt Ltd. We believe this move will position the Uravi Group to tap into global markets more effectively, drive product innovation, and deliver greater value to our stakeholders."

Shares of Uravi T and Wedge Lamps Limited was last trading in BSE at Rs. 494.70 as compared to the previous close of Rs. 502.00. The total number of shares traded during the day was 960 in over 59 trades.

The stock hit an intraday high of Rs. 509.00 and intraday low of 484.00. The net turnover during the day was Rs. 476573.00.

Source : Equity Bulls

Keywords

UraviDefenceandTechnology INE568Z01015 Acquisition