GMM Pfaudler acquires assets of HDO Technologies Limited

GMM Pfaudler Ltd (GMMP) announced that it has participated in the e-auction process for sale of Assets (factory land, building, plant and machinery, office equipment, computers, furniture and fixtures, vehicles and capital work in progress) owned by HDO Technologies Limited (in Liquidation) ("HDOT") in accordance with the process memorandum dated February 23, 2021 issued by HDOT's Liquidator under the provisions of Insolvency and Bankruptcy Code, 2016, vide order of Hon'ble National Company Law Tribunal, Mumbai bench, dated June 28, 2018 and was declared as the successful bidder by the Liquidator.

This state-of-the-art facility, spread over 11.9 acres with 7 manufacturing bays (built up area of 23,617 square meters) is located in Vatva, Ahmedabad and is equipped to manufacture a wide range of Heavy Engineering equipment with a crane lifting capacity of 200 metric tonnes, deep-hole drilling (up to 1 meter) capabilities, plate rolling capabilities up to 110 milimeters, strip cladding capabilities, orbital welding capabilities, a 308.6 square meters clean room for fabrication of high alloy materials, vertical turret lathes and other machine tools.

A consideration of INR 584.6 million is being paid for the proposed assets and the tentative date for the completion of the transaction is April 30, 2021.

Commenting on the acquisition, Mr. Tarak Patel, Managing Director of GMM Pfaudler said "We are very excited with this acquisiton as it will significantly enhance our capacity and augment our capabilities in Heavy Engineering and at the same time will free up capacity at our Karamsad facilty to expand our Glass Lined business; a very timely opportunity that fits perfectly with our long term strategy of growing all our business lines."

Shares of GMM PFAUDLER LTD. was last trading in BSE at Rs.4304.4 as compared to the previous close of Rs. 4249.15. The total number of shares traded during the day was 6252 in over 1834 trades.

The stock hit an intraday high of Rs. 4338.3 and intraday low of 4135. The net turnover during the day was Rs. 26836122.

Source : Equity Bulls

Keywords