Pitti Engineering (PEL) share price is trading flat on March 12 after the company signed an agreement with Bagadia Chaitra Industries Private Limited (BCIPL) and its shareholders to acquire 100% of the equity share capital of BCIPL at an enterprise valuation of Rs 124.92 crore.
At 09:56am, Pitti Engineering was quoting at Rs 748.55, down Rs 1.05, or 0.14 percent, on the BSE.
The cost of acquisition would be arrived at by adjusting the said enterprise value for the net debt and working capital changes on the closing date and subject to other adjustments that are mutually agreed between the parties, the company said.
As part of the overall consideration, PEL will infuse upto Rs 40 crore as funding into BCIPL, on closing date, to repay the existing debt in BCIPL.
Closing of the proposed acquisition is subject to fulfilment of condition precedents as agreed between the parties.
BCIPL is a manufacturer of electrical laminations and aluminum die cast rotors for AC/DC motors, Alternators, Pumps, Home Appliances, Electrical Vehicle, and more with major geographical exposure to south Indian market.
BCIPL operates out of Tumkur district, Karnataka where it has its manufacturing facilities and an installed capacity of 18,000 tonnes per annum.
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This acquisition would help PEL broaden its presence in South India, add to the overall asset base and production capacity, provide entry into new end use sectors, and help with new customer acquisitions, the company added.
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