Technocraft Industries India Ltd approves acquisition of BMS Industries Pvt Ltd

The Board of Directors of Technocraft Industries (India) Limited ("the Company" / "TIIL") at their meeting held today i.e. June 29, 2023, have considered and approved the Acquisition of 100% Equity Shares of BMS Industries Private Limited ("BMS). Subsequent to this acquisition BMS will become a wholly-owned subsidiary company of TIIL.

BMS has been manufacturing Drum Closures and Clamps for TIIL on job work basis from last five decades. It has a capacity to manufacture Steel Drum Closures which is equal to about 75% capacity of TIIL to manufacture Steel Drum Closures. More over entire Clamps and Metal Capseals sold by TIIL are manufactured by BMS on job work basis for TIIL.

It is therefore strategically beneficial for TIIL to acquire BMS so TIIL will have entire manufacturing capacities under one umbrella and it will enable smooth functioning of the division as a whole.

BMS is having the plant and infrastructure at Murbad, Thane, Maharashtra, (very close to the drum closure plant of TIIL) for manufacturing drum closures of annual capacity of 1248 Lakhs pieces, Clamps capacity of 296 Lakhs pieces and Metal Capseals capacity of 235 Lakhs pieces - Capacity of Drum Closures in TIIL is 1676 Lakhs pieces. Presently TIIL does not have any facility to manufacture Clamps and Metal Capseal.

Shares of Technocraft Industries (India) Limited was last trading in BSE at Rs. 1616.45 as compared to the previous close of Rs. 1620.85. The total number of shares traded during the day was 1796 in over 318 trades.

The stock hit an intraday high of Rs. 1641.95 and intraday low of 1610.00. The net turnover during the day was Rs. 2907461.00.

Source : Equity Bulls

Keywords

TechnocraftIndustriesIndia INE545H01011 BMSIndustries Acquisition