New Delhi, April 23 -- Unimech Aerospace and Manufacturing Ltd has signed an agreement to acquire tubing and precision-engineered components manufacturer Hobel Bellows Co. for Rs 450 crore ($48 million) in cash.

The company and its wholly-owned arm, Innomech Aerospace Toolings Pvt Ltd, will first pick up a 24% and a 76% stake, respectively, in Vishakhapatnam-based Hobel Bellows Pvt Ltd, which will subsequently acquire its holding entity, Hobel Bellows Co.

Unimech will finance the deal by taking on Rs 55 crore as debt, raising Rs 387 crore by issuing compulsory convertible debentures and issuing equity shares worth Rs 8 crore.

Bengaluru-based Unimech is backed by private equity firm Evolvence India Fund, which owned a 2.88% stake in the company as of March-end. It also counts ValueQuest as an investor, with a 5.14% stake via two entities. On Wednesday, shares of the company closed 5% higher at Rs 999 on the NSE.

Hobel Bellows manufactures metallic bellows and flexible tubing assemblies, high-grade steel components used in aerospace engines, turbomachinery, defence platforms, automotive engines, and industrial exhaust systems. It caters to sectors including automotive, locomotive, power transmission, water and gas, serving clients such as Cummins and US-based Wabtec. The company exports to countries such as the UK, US, Singapore, and China.

Hobel Bellows reported revenue of Rs 123.7 crore in FY26, up from Rs 117.3 crore the previous year.

The acquisition will expand Unimech's capabilities in higher-value engineered assemblies and sub-systems, it said in a statement. It will also give access to advanced manufacturing technologies such as hydroforming, thin-wall metal forming, high-temperature alloy processing, precision TIG welding, multi-layer metal forming, and fatigue and leak testing.

Calling the deal a "disciplined capital allocation decision", Unimech chairman and managing director Anil Puthan said the acquisition adds specialized capabilities and long-standing OEM relationships, aligning with Unimech's goal of building a globally competitive precision engineering platform.

Investment bank Singhi Advisors acted as the exclusive advisor on the transaction.

Published by HT Digital Content Services with permission from VC Circle.