Mumbai: Kolkata-based automated parking solutions provider LT Elevator’s shares are in focus today as it has signed a Share Purchase Agreement to acquire 66.45% in Seoul-based DYPC Inc. for USD 2.85/share. This cross-border acquisition marks LT Elevator’s transition into an IP and technology owner in the automated mechanical car parking systems and smart mobility segment.
With this, LT Elevator is expecting a revenue contribution of ₹30 crore for the rest of the year, with an initial US market entry order valued at ₹8 crore.
Following the transaction, DYPC will become direct subsidiary of LT Elevator, subject to the approvals from the relevant authorities. As part of the deal, DYPC is set to buyback and cancel about 500,000 equity shares held in the company by a Saudi Arabian investor within 60 days.
With the acquisition, LT Elevator gains 12 international patents and three major product lines- SMART PARKING, ACE PARKING and GRAND PARKING. This will help it get technology in-house and not rely on third-party technology licenses for its smart parking brand, ParkSmart.
LT Elevator is also looking at commissioning its new ₹25 crore manufacturing facility in West Bengal, scheduled to commence production by Q4 FY27. This is expected to help the company enhance its export capabilities and gross margins.
Following the news, LT Elevator’s shares have risen almost 5% in early morning trades on August 5. The small cap player’s shares have risen almost 113% in the last one year.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Readers should conduct their own research or consult with a qualified financial advisor before making any investment decisions.
