Shares of MM Forgings (MMF) jumped 5.99% to Rs 978 after the announcement of the Shareholders’ Shareholders Agreement (SSHA) with Abhinava Rizel to acquire 88% of the issued and paid-in capital.
The company announced that it is investing in electric vehicle startups. Added: Specific deadline to complete a purchase is September 30, 2022, or earlier.
Following the acquisition, CMA will receive 2,640,000 shares and will own 88% of the capital of Abhinava Riesel. This share will be a new issue and will be added to the existing paid-in capital of Abhinova Rizal.
Abhinava Rizel is a start-up company engaged in R&D and manufacturing of components/parts or systems including but not limited to transmission/train systems, electric motors, motor controllers/controllers, transmissions, and various types of ADAS systems. industry
MM Forgings is engaged in the production of steel forgings. This company is in the auto parts industry. Forging of raw, semi-finished, and fully finished steels from various grades of carbon, alloyed, microalloyed, and stainless steel.
The company’s consolidated net income was Rs 28,320 crore, up 22.7% to Rs 338 crore in net sales, up 39.6%.
MM Forgings to invest in Abhinava Rizel Pvt Ltd
MM Forgings Limited has agreed to make a strategic investment in Abhinava Rizel Private Limited by subscribing to equity shares equivalent to 88% (Eighty-Eight percent) of the issued and paid-up share capital of the Investee Company.
Towards this end, the Company at its meeting held today, i.e., 1st September 2022 entered into a share subscription and shareholders’ agreement (“SSHA”) executed by MMF with the Investee Company, the Promoters, and Existing Shareholders, to subscribe to the shares of Investee Company aggregating to 88% (Eighty-Eight percent) of the issued and paid up share capital of the Investee Company.
Abhinava Rizel Private Limited is a start-up company, engaged in the business of Research & Development and manufacturing of parts/components or systems including but not limited to electric power train/drivetrain systems, electric motors, motor controllers/drives, gearboxes, and ADAS systems for various industries.
M M Forgings Ltd is a publicly-traded global player in forgings and is investing in start-ups to produce EV powertrain components.
MM Forging acquires strategic stake in electric vehicle powertrain startup Abhinava Rizel
As part of its transformation strategy to become a dominant player in the growing electric vehicle (EV) segment, MM Forgings (MMF) has invested in the acquisition of an 88% stake in Abhinava Rizel. Additionally, MMF provides funding for manufacturing facilities and other product development initiatives. In rough terms, the MMF intends to invest INR 200 crore (about US$25 million) in the project. More importantly, the MMF consortium will also provide key technical and management expertise to accelerate Abhinava Riesel’s growth process.
Founders Abhinava Rizel, BVN Madhu, Karthik Donthula, and Shivam Bhatia (SRM Institute of Science and Technology students) have been the driving force behind the development of electric vehicle technology. Abhinava Riesel holds eight patents. An additional 10 patents for electric motors and drive technology have been filed and are pending.
Abhinava Rizel motors are based on a unique radial flow hybrid architecture topology between SynRM (Synchronous Reluctance Motor) and PMSM (Permanent Synchronous Magnet Motor) which combines the best of both technologies.