Craftsman Automation Ltd to acquire DR Axion India Private Limited

Craftsman Automation Ltd has entered into a definitive agreement on 29th December, 2022 subject to closing conditions to acquire 8,57,65,631 equity shares representing 76% of the total paid-up equity share capital (fully diluted basis) of DR Axion India Private Limited (DRAIPL) ('Transaction'). Upon completion of the transaction, DR Axion India Private Limited will be a Subsidiary of the Company.

Incorporated in December 2006, DRAIPL manufactures aluminium cylinder heads, a critical auto component used in PVs as outer shell of internal combustion engines. The company has a single manufacturing facility in Chennai, involving low pressure and gravity die casting processes.

The Company and DRAIPL both operate in the auto components space and have strengths in complementary areas. The acquisition will help both entities leverage their strengths and build better synergies.

The acquisition will involve cash consideration of Rs. 375,00,00,000 (Rupees Three Hundred Seventy Five Crores), subject to customary adjustments at Closing, if any.

Shares of Craftsman Automation Limited was last trading in BSE at Rs. 3506.85 as compared to the previous close of Rs. 3254.75. The total number of shares traded during the day was 26069 in over 4964 trades.

The stock hit an intraday high of Rs. 3709.95 and intraday low of 3349.00. The net turnover during the day was Rs. 92342668.00.

Source : Equity Bulls

Keywords

CraftsmanAutomation INE00LO01017 Acquisition DRAxionIndia