MMRFIC is a research, design and manufacturing entity, building sub-systems for next generation radars by leveraging machine learming with artificial intelligence and, mm-wave sensors with hybrid beam forming capabilities.

As per the terms of the agreement, Sansera would make an investment Rs 20 crore in MMRFIC via 1,49,250 compulsory convertible preference shares (CCPS) of Rs 100 each with a premium of Rs 1240 per CCPS; and 17 Equity Shares of Re 1 each with a premium of Rs 599 per share.

The equity percentage will be determined on conversion of CCPS based on FY24 EBITDA. Based on projected FY24 EBITDA this investment would result in an approximately 21% stake in MMRFIC. Sansera has a right to invest further and increase its stake up to 51% at a predefined valuation formula.

Offering the investment rationale, Sansera said that the said investment will help the company to enter into high technology space and have access to a strong R&D and engineering team which can address its priority market segments viz., defence and aerospace. It also has the potential in the security, healthcare, telecom (5G) and the automotive (autonomous driving — subsystems) technologies that can be exploited in future.

B R Preetham, Group, CEO, Sansera Engineering, said, "I am very pleased fo inform you that we have signed a definitive agreement for a strategic investment in MMRFIC Technology Private Limited (MMRFIC).

Diversification and collaborations have been an integral part of our journey since the very beginning. This fransaction provides an opportunity to reinforce this strategy by increasing the pie of our non-ICE offerings.

Further, it is a testimony of our commitment towards our emerging Aersopace and Defence business.

MMRFIC's team of experts and years of R&D experience in the Radars space sets it apart and made a compelling investment case for us. This transaction will help us take a leap in futuristic technologies.”

Sansera Engineering is an engineering-led integrated manufacturer of complex and critical precision engineered components across automotive and non-automotive sectors.

The company's consolidated net profit rose 33.16% to Rs 31.04 crore on a 14.80% increase in sales to Rs 557.28 crore in Q3 FY23 over Q3 FY22.

The scrip rose 0.34% to end at Rs 722.35 on the BSE yesterday.

The domestic stock market is shut today, 30 March 2023, on account of Ram Navami.