Shriram Pistons & Rings to acquire a 51% stake in EMF Innovations for INR 78 crores

Marking its foray into the EV space, Shriram Pistons & Rings Limited (“SPRL”) will invest INR 78 crores for a majority stake in the electric motor design and manufacturing company EMF Innovations Private Limited (EMFi), through SPR Engenious Limited (a wholly owned subsidiary of SPRL). The proposed acquisition is likely to be completed on or before February 15, 2023.

SEL will acquire a 51% stake in the share capital (on a fully diluted basis) of EMFi for a total consideration not exceeding INR 780.04 million, as below:

1. Subscription of 20,32,316 Equity Shares at a price of Rs. 127.40 per share as Primary Subscription through a private placement procedure and

2. Purchase of 40,90,372 Equity Shares through Secondary Purchase at a price of Rs. 127.40 per share.

EMFi’s existing portfolio of Electric Vehicle Drivetrain components, such as Electric Motors and Motor Controllers for the electric vehicle and other applications, fits into SPRL’s inorganic growth strategy. EMFi is a Singapore-backed Company incorporated on May 13, 2016, having its registered office in Coimbatore, Tamilnadu. It offers a range of BLDC Hub motors & Inner Rotor Motors, and Controllers, along with Internal Permanent Motors (IPM), Permanent Magnet Synchronous Motors (PMSMs) and as well as Switch Reluctance Motors (SRM). EMFi’s BLDC hub motor manufacturing plant in Coimbatore has been operational since January 2020. The company had a turnover of more than INR 10 crores in FY21-22, INR 1.8 crores in FY 20-21 and INR 20 lacs in FY 19-20.

Commenting on the proposed investment, Krishnakumar Srinivasan, Managing Director & CEO of SPRL, said, “With this strategic investment, SPRL aims to expand its presence in electric vehicle (EV) space to supply Electric Powertrain Components such as Motor & Controller covering all the vehicle segments from Two Wheelers, Three Wheelers, Passenger Vehicles, Commercial Vehicles and Buses. This alliance will also offer the potential for SPRL (through SEL) and EMFi to collaborate and partner to serve customers globally.”