Airfloa Rail Technology Ltd, an engineering and manufacturing company serving the railway, metro, aerospace and defence sectors, has entered into a Memorandum of Understanding (MoU) with KIN Railway Equipment Pvt Ltd to evaluate the acquisition of KIN’s business for ₹48 crore.
The proposed transaction will be structured either as a slump sale or an asset purchase, subject to due diligence, regulatory approvals and execution of definitive agreements.
Acquisition to add ₹180 crore order book
The proposed acquisition will be funded through a combination of debt and internal accruals. The business under acquisition has an order book of ₹180 crore, providing Airfloa with revenue visibility following the proposed transaction.
The proposed acquisition would provide Airfloa access to KIN’s manufacturing infrastructure, technical qualifications, certifications, inventory and customer relationships.
Focus on metro and coach manufacturing
The transaction is expected to strengthen Airfloa’s position in metro interiors and coach manufacturing while expanding its presence across domestic and export markets.
It will also enhance the company’s manufacturing capacity, technical capabilities and execution strength, enabling it to participate in larger and more complex railway and metro projects.
Company background
Airfloa said the proposed acquisition is aligned with its strategy of building a scaled and diversified rail and mobility manufacturing platform with a deeper presence across the transportation value chain.
Based in Coimbatore, KIN Railway Equipment has capabilities across metro rail, rolling stock, coach interiors and railway equipment segments.