The shares of the Micro-Cap stock specializing in manufacturing automotive lighting systems and defence-grade power supply solutions, jumped upto 4 percent following the acquisition of Spafax International Limited to expand its footprint in the UK and EU defense markets.
With a market capitalization of Rs. 552.75 crores on Wednesday, the shares of Uravi Defence and Technology Limited jumped upto 4.1 percent, making a high of Rs. 515.00 per share compared to its previous closing price of Rs. 494.70 per share.
Uravi Defence and Technology Limited, through its wholly owned subsidiary Bharat Technology Limited, has announced plans to acquire a 100% equity stake in SPAFAX International Ltd, a UK-based company specializing in advanced automotive defense solutions, particularly unbreakable vehicle mirrors, lighting systems, and safety technologies and the total consideration for the acquisition is approximately £ 3.42 Million.
Strategic Rationale
- Expand footprint in UK and EU defence markets
- Leverage Spafax ‘s patented mirror technology for military and commercial use
- Integrate advanced camera systems and safety features
- Strengthen global positioning in defence innovation.
The deal aligns with the India-UK Free Trade Agreement (FTA), which will allow Uravi to access European markets duty-free, boosting exports and competitiveness. Uravi is also set to explore backward integration and fulfill Spafax’s needs through its Indian operations, unlocking new export opportunities.
Mr. Niraj Gada, Managing Director and CEO, stated: “We are excited to announce our strategic investment in SPAFAX, a legacy brand known for its innovative and robust automotive safety solutions. This acquisition marks a significant step towards our vision of technological advancement and global integration.
This partnership will not only enhance our Defence portfolio through backward integration but also create strong synergies with SKL India Pvt Ltd. We believe this move will position the Uravi Group to tap into global markets more effectively, drive product innovation, and deliver greater value to our stakeholders.
Financials & Others
The company’s revenue rose by 11.7 percent from Rs. 10.02 crore in December 2024 to Rs. 11.40 crore in March 2025. Meanwhile, the Net profit rose from Rs. 0.71 crore to Rs. 0.93 crore during the same period.
The company maintains a low debt-to-equity ratio of 0.56, indicating strong financial stability. Promoter shareholding is high at over 65%, reflecting strong confidence in the business. Additionally, the company has demonstrated robust performance with an average 3-year net profit growth of 42.78%.
Uravi Defence & Technology Limited, Incorporated in 2004, is a leading manufacturer of incandescent and wedge-based automotive lamps. It is India’s largest producer of automotive lamps for instrument clusters and the second-largest in the signalling and parking lamps segment for OEMs.
Under the “UVAL” brand, the company offers a wide range of lighting solutions, including stoplights, taillights, and indicators, catering to both OEM and aftermarket sectors. Uravi aims for global expansion through strategic partnerships with dealers.
Written by Sridhar J
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