Hindalco Industries Ltd arm to acquire Ryker

Hindalco Industries Ltd's wholly owned subsidiary i.e Renuka Investments and Finance Limited has signed a Share Purchase Agreement ('SPA') to acquire 100% equity in Ryker Base Private Limited (Ryker).

Revenue from operations of Ryker for the year ended 31st March 2021 was Rs. 5,350.83 million (amounting to approximately 6% of the total turnover of the Company on consolidated basis) whereas the net worth of Ryker as on 31st March 2021 was Rs.682.40 million.

The acquisition will strengthen Hindalco Industries Limited copper rod manufacturing capacity by providing a time to time market advantage allowing the Company to cater to the growing demand from electrical and electronic sectors.

The enterprise value is Rs 3,230 million. Post debt and working capital adjustments, the purchase consideration is likely to be around Rs.1,670 million subject to adjustment of final purchase price in accordance with the SPA.

Ryker Base Private Ltd is a wholly owned subsidiary of Polycab India Limited. Ryker has played a strategic role by manufacturing and supplying copper wire rods which is a key input for manufacturing wires and cables.

Shares of Hindalco Industries Limited was last trading in BSE at Rs. 472.95 as compared to the previous close of Rs. 478.15. The total number of shares traded during the day was 44129 in over 1364 trades.

The stock hit an intraday high of Rs. 485.00 and intraday low of 470.00. The net turnover during the day was Rs. 20975394.00.

Source : Equity Bulls

Keywords

HindalcoIndustriesLimited INE038A01020 HINDALCO Acquisition Ryker SPA