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Sansera Signs a Definitive Agreement For Strategic Investment in MMRFIC Technology

Based on Sansera's projected FY24 EBITDA this investment would result in an approximately 21 per cent stake in MMRFIC

Sansera Signs a Definitive Agreement For Strategic Investment in MMRFIC Technology

Outlook Start-Up Desk

POSTED ON March 31, 2023 8:44 AM

Sansera announced that it has entered into a definitive agreement for strategic investment in MMRFIC Technology Private Limited. MMRFIC is a research, design and manufacturing entity, building sub-systems for next-generation radars by leveraging machine learning (ML) with artificial intelligence (AI) and mm-Wave Sensors with hybrid beam forming capabilities.

As per the terms of the agreement, Sansera would invest Rs 200 million in MMRFIC via 1,49,250 CCPS of Rs 100 each with a premium of Rs 1240 per CCPS and 17 equity shares of Rs 1 each with a premium of Rs 599 per share. The equity percentage will be determined on the conversion of CCPS based on fiscal year 2024 (FY24) earning before interest, taxes, depreciation and amortization (EBITDA).

Based on projected FY24 EBITDA this investment would result in an approximately 21 per cent stake in MMRFIC. Sansera has a right to invest further and increase its stake up to 51 per cent at a predefined valuation formula.

As per Sansera Engineering Limited, the investment rationale is as follows: 

  • Enter into high technology space and have access to a strong research and development (R&D) and engineering team which can address our priority market segments viz., defence and aerospace. It also has the potential in the security, healthcare, telecom (5G) and automotive (autonomous driving – subsystems) technologies that can be exploited in the future.
  • Have access to world-class technologies.
  • Grow this company to be a significant player in its sectors with further investment if required.

“Diversification and collaborations have been an integral part of our journey since the very beginning. This transaction 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. With MMRFIC’s niche technology, we will create a product portfolio for AatmaNirbhar Bharat," said B R Preetham, group chief executive officer (CEO), Sansera Engineering Limited.

“We are very excited to join hands with Sansera Engineering through this transaction. This alliance is expected to provide significant future growth and value-creation opportunities to MMRFIC by supporting our global competitive positioning and increasing our scale, and addressable market. We look forward to working alongside the Sansera team to continue driving innovation and creating value,” added Saravana G, founder, chief executive officer (CEO) and chief technology officer (CTO) of MMRFIC Technology Pvt Ltd.

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