Pitti Engineering signs definitive agreements for acquisition of Dakshin Foundry Private Limited

Pitti Engineering Limited ("PEL") has signed an agreement with Dakshin Foundry Private Limited ("DFPL") and its shareholders to acquire 100% of the equity share capital of DFPL at an Equity Value of ₹ 153.12 crores. The cost of acquisition comprises of the Business Value and Working Capital of DFPL on the acquisition date. DFPL has a positive cash and bank balance of ₹ 42.71 Crores and Nil debt as on 30th June 2024. The Company proposes to complete the acquisition within 15 days of signing the definitive agreement.

DFPL is engaged in the manufacture of high-quality casting in ductile iron, grey iron, low carbon, alloy steel grades and simo iron castings along with value added services like pattern making. DFPL has two manufacturing facilities located in Hosakote, Bangalore. DFPL has an installed capacity of 4200 Tonnes Per Annum.

Shri Akshay S Pitti, Managing Director & Chief Executive Officer of Pitti Engineering Limited said, "The acquisition of DFPL is synergistic with the business of the listed entity and its subsidiary companies. DFPL would add to our production capacity and operational strength. The acquisition also aligns with our inorganic growth strategy."

Shares of Pitti Engineering Limited was last trading in BSE at Rs. 1186.80 as compared to the previous close of Rs. 1191.40. The total number of shares traded during the day was 13289 in over 1820 trades.

The stock hit an intraday high of Rs. 1207.00 and intraday low of 1160.00. The net turnover during the day was Rs. 15767595.00.

Source : Equity Bulls

Keywords

PittiEngineering INE450D01021 Acquisition DakshinFoundry