Sigma Advanced Systems raises Rs 460 crore via preferential allotment

Hyderabad: Hyderabad-based defense and aerospace manufacturer Sigma Advanced Systems has raised Rs 460 crore through a preferential allotment as it looks to accelerate capacity expansion and strengthen its global manufacturing footprint amid rising demand for defense and aerospace components.

Spark Capital led the capital raise placing Rs 360 crore of the issue with 23 family office and ultra-high-net-worth individual (UHNI) investors through its equity capital markets (ECM) platform.

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The capital raise comes as Sigma looks to scale up its international operations following a series of strategic acquisitions in the UK. The company recently acquired Bromford Precision Solutions for GBP 11.89 million (around Rs 153 crore), after its acquisition of the Nasmyth Group, strengthening its capabilities in aerospace manufacturing and precision engineering. The company also recently secured a Rs 3,800 crore contract from Rolls-Royce for the supply of aerospace components, while adding 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," Sunil Kalidindi, chief executive officer of Sigma Advanced Systems said.

Also read: Sigma gets ₹3,800 crore Rolls-Royce contract for aerospace parts

Vaibhav Arren, executive director and business head, Midas Transactions at Spark Capital, said investor appetite for quality defence and aerospace companies has strengthened. "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.