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Megasoft Updated Notes

Megasoft Ltd. has transitioned from an IT software company to focus on high-potential sectors, particularly in pharmaceuticals and defense, following a merger approved by NCLT in 2022-23. The company aims to develop advanced security systems and showcase solutions for defense PSUs, while also pursuing acquisitions in the defense sector to enhance its capabilities. The merger with Sigma Advanced Systems, a player in the Indian Defense and Aerospace industry, is expected to bolster Megasoft's position in the market, with a significant increase in share capital and promoter holding post-merger.

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13 views

Megasoft Updated Notes

Megasoft Ltd. has transitioned from an IT software company to focus on high-potential sectors, particularly in pharmaceuticals and defense, following a merger approved by NCLT in 2022-23. The company aims to develop advanced security systems and showcase solutions for defense PSUs, while also pursuing acquisitions in the defense sector to enhance its capabilities. The merger with Sigma Advanced Systems, a player in the Indian Defense and Aerospace industry, is expected to bolster Megasoft's position in the market, with a significant increase in share capital and promoter holding post-merger.

Uploaded by

tanajeek
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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MEGASOFT LTD.

Formerly a IT software company in computer programming & consultancy services. Change in promoters and business after NCLT merger
approval in 2022-23.

The company made a strategic decision in 2022-23 to transition from IT business to exploring opportunities in other highpotential sectors.
Having made an investment for 40% stake in Extrovis AG (Extrovis AG is engaged in Pharma R&D and in the business of development ,
production, distribution and sale of chemicals and pharmaceuticals.) , in addition the company is making strategic inroads into the defence
sector. This shift is a part of a broader vision to realign the resources and expertise towards industries with significant growth potential.

Defence Industry Outlook


The defence sector represents a significant and growing market with substantial opportunities for companies involved in various aspects of
defence technology and manufacturing. Nations are prioritizing their defence budgets to ensure national security and preparedness against
potential threats. Rapid innovations in technology, such as artificial intelligence, cyber defence, and advanced robotics, are transforming the
defence landscape. This includes investments in new-generation missile systems also.

There is a need for airspace protection. With the increasing threat of missile attacks, UAV incursions, and other aerial threats, nations are
focusing on bolstering their airspace protection. Key measures include developing and deploying advanced air defence systems, such as anti-
missile shields and interceptors.

Focus Areas
 Artificial Intelligence
 Advanced Sensors
 Drones
 Robotics

Business Strategy and Focus for 2024-25


The company has leveraged the expertise of experienced professionals from the defence industry to develop and test advanced security
systems, including Anti-drone systems and related equipment.

One of the primary objectives of the company is to showcase and demonstrate comprehensive, end-to-end solutions for defence Public Sector
Undertakings (PSUs) and the Tri-Services, which include the Army, Navy, and Air Force, for which the company aims to make acquisitions in the
defence sector. Acquiring niche technologies would involve targeting specialized technologies that would provide unique capabilities.

Aligned with the vision of Atmanirbhar Bharat, the company is assessing indigenization of defence-related products. This focus on self-reliance
will not only support national interests but also position the company as a key player in the domestic defence manufacturing sector. The
potential in the area of airspace protection is particularly significant, and the company is dedicated to developing products that ensure the
high-level security of critical assets and very important people (VIPs) globally. In addition, for stable revenue, the company aims to establish a
strong foothold in the manufacturing of specific defence components.

Merger of related party company M/s. Sigma Advanced Systems P. Ltd with Megasoft Ltd.

M/s. Sigma Advanced Systems


Founded in 1994, is a prominent player in the Indian Defence and Aerospace industry, offering top-notch embedded system solutions
encompassing hardware and software. Their capabilities include microprocessors, digital signal processors, VLSI designs, and real-time systems.
They also offer software solutions across various hardware platforms, from embedded boards to full-fledged computers. Sigma has expertise in
Avionics, low RCS Radars, Aircraft Data Acquisition systems, Servo Actuators and critical electronics for various missile programs and has
graduated over the years to be a full system design house and manufacturer, for the Indian DPSUs and the armed forces . Their comprehensive
portfolio include
 Missile Systems – Missile systems are corner stone of modern defence, providing precise long and short range capabilities
 Avionics – Avionics is backbone of modern aerospace, integrating advanced electronics and systems
 Naval Systems – Naval systems are crucial for maritime domains and ensuring the superiority of naval forces in both defence and
offence
 Torpedo Systems – Torpedo systems are critical components of naval warfare providing unmatched underwater strike capabilities
 Communication Systems – Communication systems enable secure and reliable information exchange across all domains
 Radars Systems – Radar systems are vital for detect
detecting, tracking and identifying objects in various environments

Sigma’s premises at Hardware Park near Hyderabad IInternational Airport feature more than 20,000 sq. feet of carpet area on 2 acres of land,
expanding and building on the existing infrastructure. The site offers scope for future expansion to support business growth.
grow

At Sigma Advance Systems,, manufacturing is where innovation meets precision. The state of art facilities are equipped with advanced
technologies and process that enable to produce high quality def
defence
nce systems and components with unmatched accuracy and efficiency. The
commitment to excellence in manufacturing ensures
nsures that their clients receive solutions that are not only durable and effective
effe but also tailored
to their specific mission requirements.

Sigma Advance Systems has partnered with Grene Robotics for manufacturing of critical parts for its Anti-drone drone “INDRAJAAL”. Anti-drone
“INDRAJAAL” is the world’s only anti-drone
drone system that can defend against all classifications and all levels of autonomous drones. lNDRAJAAL
has been honored as one of the select 200 companies with Global Business Potential at Forbes India DGEMS 2024

12 technologies. 1 autonomous solution.


12 Indrajaal proprietary modular technologies that can be used separately, or in combination with each other to form an autonomous
auton drone
security solution

Clients of Sigma
 Bharat Electronics
 DRDO
 Bharat Dyanamics
 HAL
 Indian Army
 Indian Navy

While Sigma proposes to leverage its position as a recognized design, development and manufacturing uni unitt and a approved company in
Aerspace and Defence industry to providee world class products and services for n national
ational and international clients; Megasoft has commenced
focusing in the Aerospace and Defence sector and is in process of evaluating few companies for potential acquisition.

st
Sigma – As on 31 August 2024, Total Assets were 66.31 Cr and Networth of 45.9
45.955 Cr. Revenue and PAT for April to August 24 were at 22 Cr
and 1.28 Cr respectively.
th
Megasoft – As on 30 June 2024, Total assets were 418 Cr and Networth of 176.29 Cr. Revenue and PAT for April to June 2024 were 7.61 Cr
and 0.53 Cr respectively.

Share capital of Sigma before merger – 32.43 Cr


Merger ratio 316 shares of Rs.10.00 each of Megasoft for every 100 shares of Rs.10.00 each of Sigma.

Share capital of Megasoft before merger – 73.77 Cr


Add Share in exchange of Sigma – 102.47 Cr
Total share capital post merger – 176.24 Cr

Post merger the promoter holding in Megasoft stands at 72.82% against 35.07%

Pre merger Megasoft share price as on 30/12/2024 is Rs.84.60. Market Cap 624 C
Cr.
Post merger Market cap @ current price = 1491 Cr

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