Unimech Acquisition Makes Hobel Bellows Fully Owned

Board approves internal share acquisition

Unimech Aerospace and Manufacturing Limited has approved the acquisition of a 76% equity stake in Hobel Bellows Private Limited from Innomech Aerospace Toolings Private Limited, its wholly owned subsidiary. The decision was announced on October 27, 2026, alongside the company’s unaudited financial results for the quarter and six months ended September 30, 2026. The transaction covers 60,80,000 equity shares of Hobel Bellows. Once completed, Hobel Bellows will become a wholly owned subsidiary of Unimech Aerospace and Manufacturing.

The transaction is an internal restructuring exercise rather than a fresh acquisition of the underlying business from an outside seller. Unimech already holds the remaining 24% stake in Hobel Bellows directly, while Innomech holds 76%. Transferring Innomech’s stake to the parent will consolidate the entire ownership of Hobel Bellows at Unimech Aerospace.

Transaction valued at ₹6.08 crore

The proposed purchase consideration is ₹6.08 crore and will be paid entirely in cash. The shares are being acquired at ₹10 each, based on a registered valuation report. At this price, the 60,80,000 shares being transferred have a value of ₹6.08 crore.

Unimech has classified the deal as a related-party transaction because Innomech Aerospace Toolings is its wholly owned subsidiary. The company said the transaction will take place at an arm’s-length price. No governmental or regulatory approvals are required for completing this particular share transfer.

Why the ownership structure is changing

The company said the acquisition is intended to simplify and streamline the group’s holding structure. Before the proposed transfer, Hobel Bellows is a subsidiary of Innomech and a step-down subsidiary of Unimech. After the transaction, it will be held directly by Unimech as a wholly owned subsidiary.

A direct holding can reduce layers within a corporate group and improve administrative efficiency. It also places ownership, oversight and reporting of Hobel Bellows directly under the listed parent. Unimech has not disclosed any separate financial impact from the internal transfer beyond the cash consideration and the stated restructuring objective.

Hobel Bellows was acquired earlier in April

The latest transaction follows Unimech’s broader acquisition of Hobel Bellows Co. Earlier, Unimech Aerospace and Innomech Aerospace Toolings signed definitive agreements on April 22, 2026, to acquire a 99.99% stake in Hobel Bellows Co. The acquisition was completed on April 27, 2026.

The earlier transaction was valued at ₹450 crore. Its consideration included ₹8 crore for common equity, ₹55 crore for non-convertible debt and ₹387 crore for compulsorily convertible debentures. Following that completion, Unimech held 24% in Hobel Bellows while Innomech held the remaining 76%.

Capability addition through Hobel Bellows

Hobel Bellows manufactures metallic bellows, expansion joints, flexible tubing components, sheet metal fabrications and precision-engineered assemblies. Its products cater to automotive, locomotive, power transmission, water and gas, and other engineering applications. The business also adds capabilities relevant to industrial and aerospace-linked precision manufacturing.

Unimech had described the original acquisition as a move to add complementary capabilities in metallic bellows, flexible tubing components and precision-engineered assemblies. The company said the transaction would broaden its manufacturing scope and support its precision engineering platform across high-value industrial sectors.

Financial context of the acquired business

For the year ended March 31, 2026, Hobel Bellows Co reported total revenue of ₹124 crore. This revenue figure relates to the business acquired in April and provides context for the scale of operations now being brought under Unimech’s direct ownership structure.

The ₹6.08 crore transaction announced in October should therefore be viewed separately from the ₹450 crore acquisition completed in April. The larger April transaction related to buying the operating business, its equity, debt and compulsorily convertible debentures. The new proposal concerns the transfer of the 76% equity interest from Innomech to Unimech.

Market and governance relevance

For investors, the key outcome is that Hobel Bellows will no longer sit within a step-down subsidiary structure after completion. It will become a direct wholly owned subsidiary of Unimech Aerospace. This may make the group structure easier to follow in future disclosures and financial reporting.

The related-party classification is also relevant from a governance perspective. Unimech has stated that the consideration is based on a registered valuation report and that the transfer is at arm’s length. The company has further stated that no regulatory or government approval is needed for the acquisition.

Management announcement made alongside approval

On October 27, Unimech also announced the promotion and transfer of Prathap B. Naidu as General Manager, effective November 1, 2026. The personnel update was disclosed alongside the board’s approval of the Hobel Bellows share acquisition and the release of financial results.

No further details on the operational responsibilities attached to the role were provided in the announcement. The company’s disclosures place the management change and the ownership restructuring within the same set of board decisions.

What happens next

The next step is completion of the cash purchase of Innomech’s 76% shareholding in Hobel Bellows Private Limited. On completion, Unimech will own 100% of Hobel Bellows directly. The company has stated that the transaction needs no governmental or regulatory approvals.

The restructuring follows the April 2026 acquisition of Hobel Bellows Co and formalises Unimech’s direct ownership of the business. Future company disclosures will indicate the completion date of the internal transfer and any reporting changes arising from Hobel Bellows becoming a wholly owned subsidiary.