Dynamatic Technologies Ltd. — Capital/Financing Update 2022

Aug 8, 2022

CIR/CFD/CMDI4I201ídatedgSeptembe	CIR/CFD/CMDI4I201ídatedgSeptembe	r2015
Detailstobe did**-** AcquisitiþtsclosedonAName of thetargetentity, detailsinbriefsuchas size,turnoveretc.;		ding agreementtoacquire)Dynamatic ManufacturingLimited("DML,),(earlierJKM FerrotechLimited),subsidiary oftheCompany,DuringFY2021-22,DML
		achievedaTotalRevenueofRs.422Lakhs.
B	Whether theacquisition would fall	Thepurchase of sharesfrom shareholdérs of
	withinrelated partytransaction(s)and whetherthe promoter/promotergroup/groupcompanieshave anyinterestinthe entity beingacquired?lf yes,natureofinterest and details	DMLisarelated party transactionfortheCompany.ApartfromDMLbeingasubsidiaryoftheCompany,42.35%isheldthrough JKMErlaAutomotive Limited(JEAL)beingawholly ownedsubsidiaryofthe
	thereofandwhether the sameisdoneat "arm's length	Company. Theacquisitionis being made withprimary intenttohavealeanorganizationalstructurebyacquiring24.62o/osharesfrom
		theexisting shareholderofDMLi.e.,EEL,beingtheCompany'sforeignstep-down
		subsidiaryat facevaluewhichislowerthan
		fairmarketvalue andpursuantwithFEMA
C	lndustry towhich the entitybeingacquiredbelongs;	Regulations.Conceptualizing,designing,andmanufacturingofaircraftcomponentsofall
		description including hydraulicandother
		machinery.
D	Objectsandeffects ofacquisition(includingbut not limitedto,disclosure ofreasonsforacquisition	Theobjectiveofpurchaseis tofurtherconsolidate shareholdingof theCompanyinDML.The additional purchase would resultin
	oftargetentity, if itsbusinessisoutside the main lineofbusinessof	Companyhavingaleanorganizationstructure and establishing direct controlover
	thelisted entity);	DMLalongsideitsWOS(JEAL)hotding
		42.35%)eliminatingindirectshareholding
		through foreignsubsidiary.
E	Brief details of anygovernmental or	None
	regulatoryapprovalsrequired for the
	acquisition;
F	lndicative timeperiodforcompletionoftheacquisition;	By31'tAugust2022oranyotherdateasmutuallyextendedbytheparties.
G	Nature of consideration -whethercashconsideration or share swapand detailsofthesame;Theconsiderationwould beincashandpaidthroughbanking channels.¿ctf[<br>or0YNA$AI\ClECHNOLuu':7'"'ffinRegistered OfficeDynamatic Technologies Limitod
		JKMPlazaDynamaticAerotropolis55KIADBAerospacepark
		DevanahalliBangalore562110lndia
		Tel+91 80 21111223+91B0 2204 0b35

H	Cost ofacquisitionorthe priceat	Theconsiderationpayableincashfor
	whichtheshares are acquired;	purchase of shareswouldbeappx.Rs.61.55
		lakhswhichislower thanfairmarketvalue
		reportgivenbyJainJindal&Co.Also,appropriatetax,ifany,inrespecttothis
		transaction shallbepaidaccordinqlv.
	Percentage of shareholding/control	TheCompanywouldpurchaseadditional
	acquired and/ornumber ofshares	6,15,567 equity shares constituting24.62%in
	acquired;	DML,resultingofincreaseinCompany's
		shareholdinqin DMLto57.65%.
J	Brief background aboutthe entity	lncorporatedon30thApril 2007,DMLwas
	acquiredintermsofproducts/lineof	earlierintoFoundry Operationsandwas
	businessacquired,dateof	cateringtoCompany'sAutomotivedivision.
	incorporation,historyoflast 3years	After the asset's saleofthe foundrybusiness
	turnover, countryinwhich the	viz.,fenouscastingfacilitylocatedat
	acquiredentityhaspresenceand	Chennai,TamilNadu,thereare no business
	any othersignificant information(inbrief);	operationsinDML. Hence DML, asapartofitsnewvisionandmission,isnowcontemplatingtoreviveitsbusiness
		operationsbydiversifying intomanufacturing
		activitiesviz.sheet metaloperations,heat
		treatment, surfacetreatment,metalforming,
		metalcoatingalongsideotherancillary
		operations.The total revenue forlast 3years:
		FY 2019-20: Rs. 10,801 Lakhs; FY 2020-21:
		Rs.9,235Lakhs:2021-22:422Lakhs