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Dynamatic Technologies Ltd concludes sale of foundry business

Posted On : 2021-07-23 23:31:19( TIMEZONE : IST )

Dynamatic Technologies Ltd concludes sale of foundry business

Dynamatic Technologies Ltd has concluded the sale of the foundry business assets of its wholly owned subsidiary JKM Ferrotech Limited ("JFTLn), to M/s. Danblock Brakes India Private Limited (DBIPL), an Indian subsidiary of the US $ 2 Bn MAT Holdings, Inc. of USA.The transaction has been concluded on July 22, 2021.

Mr. Udayant Malhoutra, CEOB: MDof Dynamatic said, "As pioneers in the automotive sector, we benefited from our association with auto majors like Daimler, BMW, Hyundai, Ford, Renault and TATA. Learnings from this sector have enabled us to build a world-class Aerostructure capability, and today we are a Tier 1 Single Source supplier for marquee clients in Aerospace and Defense Businesslike Airbus, Boeing, Bell Helicopter and HAL. The company has also focused on designing and building proprietary hydraulic products and are now the world's largest producer of Hydraulic Gear Pumps for agricultural tractors. When we decided to divest our Indian automotive castings business, we looked for someone who is more aligned to this sector. We are happy to hand it over to the US$2 Billion MATGroup, one of the world's leading manufacturer of automotive components. We wish the MAT team great successwith this business."

Mr. Steve Wang, Chairman & CEOof MAT Holdings, Inc., said, "MAT has over 10 facilities in India located in Northern India and with the JFTLassets, we shall be marking our first entry in Southern India, starting with Chennai. With its location close to the port and in one of the most prominent auto belts in India, we find it an ideal site to expand our operations, both in domestic & export markets. We thank the Dynamatic team for this transition, as we embark upon our new journey in Chennai."

Mumbai based Singhi Advisors were the sole Transaction Advisors. Zerick Dastur Advocates & Solicitors were the legal advisors to JFTL and Shardul Amarchand Mangaldas & Co were the legal advisors to MAT.

Shares of DYNAMATIC TECHNOLOGIES LTD. was last trading in BSE at Rs. 1570 as compared to the previous close of Rs. 1596.1. The total number of shares traded during the day was 973 in over 177 trades.

The stock hit an intraday high of Rs. 1645.05 and intraday low of 1565.9. The net turnover during the day was Rs. 1561355.

Source : Equity Bulls