Sigma Advanced Systems raises Rs 460 crore to fund acquisitions and strategic growth

Hyderabad-based aerospace and defence manufacturer Sigma Advanced Systems has raised about Rs 460 crore through a preferential allotment, with the company planning to use the funds for growth initiatives, including acquisitions and strategic investments. Chennai-based Spark Capital led the funding , placing Rs 360 crore of the issue with 23 family office and ultra-high-net-worth individual investors through its equity capital markets platform, Midas Transactions. Up to 75% of the proceeds, or about Rs 345 crore, may be used for inorganic growth opportunities, including strategic acquisitions and investments, while the remainder may be used for general corporate purposes. The fundraising comes as Sigma expands its international operations and order book, including through acquisitions in the UK and new aerospace contracts. The company recently acquired 100% of UK aerospace engineering company Bromford Precision Solutions for £11.89 million, or about Rs 153 crore. The transaction followed its earlier acquisition of Nasmyth Group and expanded Sigma's presence in aerospace manufacturing and precision engineering. Sigma has also entered into a seven-year agreement with Rolls-Royce worth nearly £300 million, or about Rs 3,800 crore, for the supply of high-precision aerospace components and assemblies. It has also received multiple export orders from North America. “As global demand for trusted defence and aerospace manufacturing partners continues to grow, we are investing aggressively in expanding our capabilities, strengthening our international footprint and building technologies that support the evolving requirements of our customers,” Sigma CEO Sunil Kalidindi said. Sigma designs and manufactures precision-engineered platforms, subsystems and mission-critical solutions for defence and aerospace applications. Its portfolio includes counter-unmanned aerial systems, unmanned aerial systems, missile systems, radar and electronic warfare, avionics and naval systems. Its aerospace manufacturing operations are built to AS9100D standards. The company has manufacturing operations across India and the UK. Spark Capital said the fundraising reflected private investor confidence in India's defence and aerospace sector amid the country's push towards defence indigenisation. Vaibhav Arren, executive director and business head of Midas Transactions at Spark Capital, said Sigma's execution record, technological capabilities and expanding order book had contributed to investor interest. “The participation from our family office and UHNI clients reflects the confidence they have in the company's growth journey as well as the broader opportunities emerging from India's push towards defence indigenisation,” he said.