Adhunik subsidiary Neepaz sold to Nagpur Automotive

Adhunik Metaliks Limited, sold its forging subsidiary, Neepaz V Forge, to Nagpur Automotive Industries Private Limited for Rs 230 crore ($44 million), outlaying a strategy to divest non-core assets. Neepaz V Forge manufactures forged products for automobile players such as Tata Motors, Ashok Leyland, Renault and Mahindra & Mahindra. Adhunik Metaliks is backed by Clearwater Capital Advisors.

Neepaz’s revenue is said to be Rs 116 crore with Ebitda of Rs 20 crore, and net profit of Rs 4.8 crore. Its product profile includes front axle beams, crank shafts, cam shafts, connecting rods, stub axles, steering knuckles, axle arms, differential case, differential covers, differential housings, pistons, yokes, gears, track links etc.

The current deal values the company at 11.4 times its previous-year Ebitda and 48-times its net profit.

The advisors for the deal were Enam for Adhunik Metaliks Ltd and ICICI Securities for Nagpur Automotive.  

In September 2007, Adhunik had acquired V Cube Forge India Ltd for an undisclosed amount in September 2007 and later renamed it as Neepaz V Forge. The Kolkata-based Adhunik is a $1 billion group with business interests in steel, power and mining. Adhunik Metaliks is a public listed firm.

Earlier transactions of Adhunik included the Deepak Cables India Ltd acquisition of Adhunik Power Transmission Ltd from Adhunik Metaliks. Adhunik Power Transmission (formerly Unistar Galvanisers & Fabricators Ltd) is a manufacturer of fabricated and galvanised items.