Airfloa Rail Technology Ltd has signed a Memorandum of Understanding (MoU) with KIN Railway Equipment Pvt Ltd to acquire its business in Coimbatore, Tamil Nadu, for a proposed consideration of ₹48 crore.
The transaction is proposed to be structured as a slump sale or asset purchase and will be funded through a combination of debt and internal accruals. The acquisition remains subject to due diligence, regulatory approvals and execution of definitive agreements.
The business being acquired has an order book of ₹180 crore, providing Airfloa with additional revenue visibility. The transaction will also provide access to KIN’s manufacturing infrastructure, technical qualifications, certifications, inventory and customer relationships.
KIN operates across metro rail, rolling stock, coach interiors and railway equipment segments. The proposed acquisition is expected to strengthen Airfloa’s presence in metro interiors and coach manufacturing while expanding its reach across domestic and export markets.
Airfloa said the acquisition would also enhance its manufacturing capacity, technical capabilities and execution capabilities, allowing it to participate in larger railway and metro projects.
Airfloa Rail Technology manufactures rolling stock components for Indian Railways and undertakes turnkey interior furnishing projects. The company also supplies components to the aerospace and defence sectors and has executed projects including Vande Bharat Express, Vistadome, RRTS and Agra-Kanpur Metro.
Also Read: SmallCap Spotlight Interview with D. Manikandan, Joint MD, Airfloa Rail Technology Ltd.