Jaykay Enterprises acquires 76.41% stake in Allen Reinforced Plastics

JayKay Enterprises, through its wholly owned subsidiary JK Defence & Aerospace, has acquired 76.41% equity stake in Allen Reinforced Plastics (Allen) for about Rs 90 crore.

Allen Reinforced Plastics is a defence and aerospace engineering company with a strong track record. The company has been in operation since 1987 and has a turnover of about Rs 8.61 crore in FY 21, Rs 28.99 crore in FY 22, and Rs 25.21 crore in FY 23. The company has a presence in India and operates in a single segment. It is s involved in the design, development, manufacture and testing of composite and allied engineering products for the purpose of defence, aerospace and engineering products like missile & rockets components, underwater applications, marine and submarine, gun and accessories.

The three promoter directors directly oversee the business operations along with executive directors and general managers. in addition, the company has close to 48 employees on its payroll.

The acquisition of Allen Reinforced Plastics will help JayKay Enterprises to expand its presence in the defence and aerospace sector.

Meanwhile, the company's board on 9 July 2023 approved raising upto Rs.150 crore through rights issue of equity shares. The company will issue 5,84,57,688 equity shares at Rs Rs 25 per share. The company will issue one rights share for each equity share held.

On a consolidated basis, Jaykay Enterprises reported net loss of Rs 2.07 crore in Q4 March 2023 as against net loss of Rs 0.05 crore in Q4 March 2022. Net sales rose 269.29% YoY to Rs 10.34 crore in Q4 March 2023.

Shares of Jaykay Enterprises surged 8.68% to Rs 73.98 on 7 July 2023.

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