3 weeks ago

RRP Electronics to Acquire Vital Electronics, Adds ₹90 Crore Order Book

RRP Electronics to Acquire Vital Electronics, Adds ₹90 Crore Order Book
RRP Electronics To Acquire Vital Electronics, Deal Adds ₹90 Crore Order Book · freepressjournal.in

A company called RRP Electronics has decided to buy another company called Vital Electronics.

RRP Electronics makes the tiny computer chips that go inside electronic devices.

Vital Electronics helps build the circuit boards and finished electronic products that use those chips.

By buying Vital, RRP can make whole electronic products from start to finish.

The deal will also add a lot of new work for RRP, worth 90 crore rupees.

The two companies plan to do the purchase in four steps.

RRP will own half of Vital Electronics by March 2027.

It hopes to own the whole company by March 2028.

After that, they plan to join the two companies together into one bigger company.

The purchase still needs approvals from the government and other rules to be followed.

Key facts

Transaction
Memorandum of Understanding and term sheet to acquire 100% of Vital Electronics Private Limited
Order book addition
Rs 90 crore
Stake timeline
50% stake by March 2027; full acquisition by March 2028
Acquisition structure
Four tranches, subject to business milestones and regulatory approvals
Vital Electronics services
PCB assembly, surface-mount technology, electromechanical assembly, product testing, system integration
Target sectors
Defence, automotive, industrial, telecom, consumer electronics
Post-acquisition plan
Merge Vital Electronics with one of the RRP Group's listed entities
Announcement location
Mumbai

Sources

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