DTDynamatic Technologies505242Preferential allotment

Board approves Dynauton preferential issue, slump sale of UAV vertical

Board of Dynamatic Technologies approved on 24 October 2026: (1) a preferential issue by wholly owned subsidiary Dynauton Ltd of 89.9 lakh equity shares of face value Rs. 10 each.

By ScoutQuest · Sat 24 Oct 2026, 4:00 PM IST · 3 min read

Preferential issue size

89.9 lakh equity shares of face value Rs. 10 each

Issue price (first two subscriptions)

Rs. 50 per share (premium Rs. 40)

Slump sale consideration for UAV vertical

Rs. 29.18 crores

The board of Dynamatic Technologies met on 24 October 2026 and considered and approved two connected proposals, both subject to requisite approvals. Dynauton Limited is presently a wholly owned subsidiary of the company.

Preferential issue by Dynauton

• Dynauton proposes to issue and allot 89.9 lakh equity shares of face value Rs. 10 each to identified subscribers.
• The first two proposed subscriptions are priced at Rs. 50 per share, comprising a premium of Rs. 40 per share.
• The minimum price is based on a valuation report issued by an IBBI-registered valuer using the Net Asset Value method.
• The money is meant to support Dynauton's capital requirements: research and development of autonomous technology systems, hardware and software, and acquisition of the UAV Vertical, including R&D related work-in-progress and inventories.
• Shares proposed to be subscribed by the Dynauton ESOP Trust (to be formed) are aimed at incentivising and retaining key talent.

Shareholding after the proposed issue

• The company's shareholding in Dynauton is expected to reduce from 100% to approximately 83.33%, with Dynauton continuing as a subsidiary under the company's control.
• Dr. Udayant Malhoutra, Promoter, CEO & Managing Director of the company and Founder Chairman & Director of Dynauton, proposes to subscribe for 5,00,000 shares, an interest of approximately 5.56%. He is subscribing in cash at the same independently determined price and on the same terms as the company, foregoing compensation, sweat equity or a founder allocation for past contributions.
• The Dynauton ESOP Trust is expected to hold approximately 11.11%, subject to final allotment.

Transfer of the UAV vertical

• The company proposes to transfer its UAV vertical to Dynauton on a slump sale basis as a going concern, covering R&D of autonomous technology systems, hardware and software, related work-in-progress, inventories, intellectual property, contracts, employees, liabilities and all associated rights and obligations, under a Business Transfer Agreement.
• The transfer is without assigning individual values to the assets and liabilities.
• Consideration agreed upon is Rs. 29.18 crores, to be received in accordance with the terms of the BTA. The company will intimate the consideration on the closing or effective date when it is fully received.
• Completion is expected on or before 31 December 2026, subject to requisite approvals, or such other date as mutually agreed between the parties.

Figures that frame the size

• Investment of Rs. 37,45,00,000 divided into 74.9 lakh equity shares of Rs. 50 each on a preferential basis, including premium of Rs. 40 each.
• Those 74.9 lakh equity shares, together with the 10,000 equity shares already held (75,00,000 in aggregate), represent 63.33%.
• The turnover of Dynauton for the financial year ended 31 March 2026 was NIL.
• In Rs. lakhs, DTL's total income was 78,393 and net worth 68,502, each 100% of the figures shown; the transferred business was Nil on both.

Points to note

• Both transactions fall within related party transactions and are stated to be at arm's length.
• The slump sale is outside the Scheme of Arrangement and is being undertaken through execution of a Business Transfer Agreement.
• There will not be any change in the shareholding pattern of the listed entity pursuant to the transaction.
• Further disclosures will be made after completion of the preferential allotment and the business transfer upon execution of the BTA.

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