Optiemus Infracom Invests in Subsidiary BigTech to Bolster Glass Manufacturing Capabilities

On May 14, 2024, Optiemus Infracom Limited, a growing player in the Indian infrastructure sector, announced a strategic investment in its Joint Venture cum Subsidiary company, Bharat Innovative Glass Technologies Private Limited (BigTech). This move highlights Optiemus’ commitment to advancing its presence in the high-growth mobile consumer electronics market.

Supporting BigTech’s Growth Trajectory

The Board of Directors of Optiemus Infracom has approved the acquisition of 2,90,50,000 equity shares in BigTech at a face value of ₹10 each and an offer price of ₹10 per share. This translates to a total investment of ₹29,05,00,000. These funds will be instrumental in supporting BigTech’s establishment of a state-of-the-art manufacturing facility.

Strategic Objectives of the Acquisition

Optiemus’ investment in BigTech serves several key objectives:

• Fulfilling BigTech’s Funding Requirements: The primary purpose of the investment is to provide BigTech with the necessary capital to construct its manufacturing facility. This facility will be dedicated to the production of finished cover glass for mobile consumer electronic devices, catering to the demands of the next generation of gadgets.
• Maintaining Joint Venture Control: By subscribing to the rights issue, Optiemus ensures its continued ownership and control over BigTech, safeguarding its strategic interests within the joint venture.
• Enhanced Brand Image and Value Creation: Optiemus’ proactive investment reinforces its commitment to innovation and positions the company at the forefront of the mobile consumer electronics industry. This strategic move is expected to enhance brand image and create long-term value for Optiemus’ stakeholders.
• Strengthened Financial Performance: The investment in BigTech has the potential to contribute positively to Optiemus’ financial performance in the long run. A successful BigTech venture can lead to a strengthened balance sheet, greater financial flexibility, and increased earnings for Optiemus.

Transaction Timeline and Approval Process

The acquisition is expected to be finalised on or before June 15, 2024. The entire investment of ₹29,05,00,000 will be made through a cash payment. Importantly, this transaction does not require prior approval from any governmental or regulatory authorities, streamlining the process.

About Bharat Innovative Glass Technologies Private Limited

Established in October 2023, BigTech is a joint venture between Optiemus Infracom Limited and Corning International Corporation. Headquartered in New Delhi, BigTech focuses on the manufacturing of finished cover glass specifically designed for use in next-generation mobile consumer electronic devices. This strategic investment by Optiemus positions BigTech for significant growth and positions the joint venture as a key player in the evolving mobile device landscape.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.