Unimech Aerospace to Acquire Hobel Bellows for ₹450 Crore to Expand Precision Engineering Portfolio

Unimech Aerospace and Manufacturing Limited has announced a significant strategic move to strengthen its position in the aerospace and defense value chain. The company has approved an investment of up to ₹450 crore to acquire Hobel Bellows Co. through a structured acquisition involving its wholly-owned subsidiary, Innomech Aerospace Toolings Private Limited.

The Acquisition Structure

The transaction will be executed via Hobel Bellows Private Limited, an entity incorporated in early 2026. Unimech Aerospace will hold a 24% stake in this private entity, while its subsidiary, Innomech Aerospace Toolings, will hold the remaining 76%. Following this, Hobel Bellows Private Limited will acquire a 99.99% partnership interest in Hobel Bellows Co.

The total consideration of ₹450 crore will be paid in cash across various tranches. This investment includes ₹8 crore for equity shares, a ₹55 crore loan, and ₹387 crore through Compulsorily Convertible Debentures (CCDs). Unimech Aerospace's direct contribution to this total stands at ₹204.92 crore, with Innomech Aerospace Toolings contributing ₹245.08 crore.

Strategic Rationale and Industry Impact

Hobel Bellows Co. is a specialized manufacturer of metallic bellows and flexible tubing assemblies. These components are critical for aerospace engines, turbomachinery, defense platforms, and industrial exhaust systems. For Unimech Aerospace, which already specializes in precision machined components for the energy and aerospace sectors, this acquisition represents a natural adjacency.

The move marks a transition for Unimech from providing individual machined components to delivering complex engineered assemblies. Furthermore, the acquisition grants the company access to advanced manufacturing technologies, including hydroforming, thin-wall metal forming, precision TIG welding, and high-temperature alloy processing.

Target Entity Profile

Hobel Bellows Co. was registered in April 2007 and has shown consistent financial growth over the last three years. Its turnover rose from ₹100.99 crore in FY24 to ₹117.25 crore in FY25, reaching ₹123.74 crore as of March 31, 2026. The firm's products are widely utilized in high-horsepower diesel engines, marine engines, locomotives, and power generation units.

Timeline and Compliance

The acquisition is expected to be completed within seven days from the date of occurrence, which was recorded on the evening of April 22, 2026. This expansion is poised to enhance Unimech's technological capabilities and broaden its market reach across the global aerospace and industrial sectors.

Shares of Unimech Aerospace and Manufacturing Limited was last trading in BSE at Rs. 998.20 as compared to the previous close of Rs. 946.80. The total number of shares traded during the day was 9321 in over 642 trades.

The stock hit an intraday high of Rs. 1016.15 and intraday low of 941.30. The net turnover during the day was Rs. 9207802.00.

Source : Equity Bulls

Keywords

UnimechAerospaceandManufacturing INE0U3I01011 Defense Acquisition HobelBellows