Please find attached the proposed acquisition of RRP Drones Innovation Private Limited in exchange of shares (share swap) of RRP Defense Limited.
Awaiting price reaction for this filing.
RRP Defense Ltd's Board has approved acquiring the entire 100% stake (2,83,243 equity shares) of RRP Drones Innovation Private Limited through a share-swap deal. The company will issue up to 1,27,45,935 equity shares at Rs. 178 each (face value Rs. 10, premium Rs. 168) to the existing shareholders of the target, taking the deal value to roughly Rs. 226.88 crore. Post-acquisition, RRP Drones will become a wholly owned subsidiary. The transaction is a related-party deal since promoters and directors are common to both entities. Additionally, the Board noted a proposed merger with RRP S4E Innovation Limited and formed a committee to evaluate the structure. The corporate office was also shifted from Gurugram to Navi Mumbai. RRP Drones reported a turnover of Rs. 14.09 crore in FY25 and operates in the drone and defence space.
Existing shareholders of RRP Defense will face dilution as the share base expands significantly (paid-up capital rising from Rs. 13.72 crore to Rs. 26.46 crore, nearly doubling). The deal adds a drone business vertical aligned with the defence theme, but the related-party nature and the size of the swap mean shareholders should watch the share-swap valuation and any open-offer implications closely.