Pitti Engineering Ltd updates on restructuring

Pitti Engineering Limited ("PEL" or "the Company") announced a transaction that merges the supply chain, margins and revenue of group company Pitti Castings Private Limited (PCPL) which is engaged in the manufacturing of High-Quality Casting in Grey Iron, Ductile Iron, Low Carbon and Alloy Steel Grades ("Castings Business").

Pitti Engineering Limited will issue and allot 01 (One) equity share to the shareholders of Pitti Castings Private Limited for every 55 (Fifty-Five) equity shares held by them in PCPL. The consolidation is expected to be completed in the next 12-14 months, on receipt of stock exchange and NCLT approvals.

Mr. Akshay S Pitti, Vice-Chairman & Managing Director of the Company, said "This strategic move strengthens the Company's position as a comprehensive and end-to-end machine components solution provider. The merger will allow PEL to streamline its operations and offer enhanced value to its customers. By bringing together the different stages of the manufacturing process under one roof, the Company can now provide a seamless and efficient experience from process design to production.

The proposed merger will position PEL as a leading vertically integrated supplier of machine components. This would enhance PEL's position before domestic and international customers to expand its business.

Having control over an integrated supply chain will ensure the highest quality standards are met at each stage. By reducing reliance on external suppliers and intermediaries, PEL can also accelerate production timelines, improve cost-efficiency, and maintain greater control over the entire value chain."

Shares of Pitti Engineering Limited was last trading in BSE at Rs. 365.45 as compared to the previous close of Rs. 372.00. The total number of shares traded during the day was 12730 in over 582 trades.

The stock hit an intraday high of Rs. 375.50 and intraday low of 362.60. The net turnover during the day was Rs. 4667819.00.

Source : Equity Bulls

Keywords

PittiEngineering INE450D01021 Merger PittiCastings