Millworks Technologies Acquires 67% Stake in Vidwan Aeronautics

Debt converted to equity worth Rs 2.75 crore; Vidwan Aeronautics becomes a subsidiary.

Reader Takeaway: Liquidity is preserved via a non-cash transaction while gaining a footprint in the aerospace manufacturing sector.

What just happened

Millworks Technologies has secured board approval to convert an outstanding loan of Rs 2.75 crore into 15,22,727 equity shares of Vidwan Aeronautics Private Limited. This transaction grants Millworks a 67% majority stake in the Bengaluru-based firm. The shares are valued at Rs 18.05 per share. The company confirmed that this is an arm's length transaction and not a related-party deal.

Why this matters

By converting debt into equity, Millworks avoids a cash outflow while formally bringing an aerospace engine component manufacturer under its control. Vidwan Aeronautics has demonstrated consistent revenue growth, reporting a turnover of Rs 2.02 crore in FY 2025-26, up from Rs 0.64 crore in FY 2023-24. This acquisition provides Millworks with a new operational vertical to pursue growth and synergies within the aerospace supply chain.

What changes now

Vidwan Aeronautics will transition from an investee to a subsidiary. Millworks expects to finalize all statutory formalities by September 30, 2026. The integration will allow Millworks to consolidate the financial performance of the aerospace unit into its own group results moving forward.

Risks to watch

Investors should watch for the successful operational integration of Vidwan Aeronautics. While the subsidiary shows revenue growth, its scale remains small, and its ability to scale production and maintain margins under new ownership remains a key monitoring point.

What to track next

Watch for the final allotment notice and the reflection of this entity in the upcoming quarterly consolidated financial statements.