The private equity firm will continue to retain remaining 20 per cent stake.
"The consideration for the 54 per cent stake acquired by GMM, which is expected to be around $27.4 million (nearly Rs 205 crore), will be funded by the company through a mix of internal accruals and debt," it said.
Pursuant to the acquisition, GMM shall become the ultimate holding company with the entire business of Pfaudler being consolidated into the company.
The company expects to complete the transaction by November this year.
"This transaction combines the strengths of three very different partners promoter family, professional management and private equity which we believe will help extract synergies and create value for all stakeholders," GMM Managing Director Tarak Patel said.
At 9:34 AM, the stock was trading 5.61 per cent higher at Rs 6,208.20 as compared to 0.83 per cent gain in the S&P BSE Sensex. Around 61,000 shares have already changed hands on the NSE and BSE, combined, so far.
announced its June quarter results of 2020-21 (Q1FY21) on July 29, 2020. The company posted a 2.77 per cent year-on-year (YoY) growth in consolidated net revenue at Rs 154.43 crore during the quarter. Net profit increased by 8.5 per cent YoY to Rs 19.19 crore while net profit margin came in at 12.43 per cent.
On the operational front, the company's earnings before interest, tax, depreciation, and ammortisation (Ebitda) stood at Rs 27.49 crore in Q1FY21, down 0.36 per cent YoY. Ebitda margin came in at 17.8 per cent, down 56 bps YoY.
The company had also announced that it has entered into binding term sheet on June 30, 2020 with De Dietrich Process Systems India Pvt. Ltd. (DDPSI) for itemised sale of their Glass Line equipment manufacturing facility at Hyderabad for consideration equivalent to 6.25 million euros.