GMM Pfaudler jumped 4.70% to Rs 4,418.70 after the company announced the acquisition of assets of HDO Technologies for a consideration of Rs 58.46 crore.
The company said that it had participated in the e-auction process for sale of assets (factory land, building, plant and machinery, office equipment, computers, furniture and fixtures, vehicles and capital work in progress) owned by HDO Technologies (in liquidation). It was declared as the successful bidder by the liquidator.
The acquired facility, spread over 11.9 acres with 7 manufacturing bays, is located in Vatva, Ahmedabad and is equipped to manufacture a wide range of heavy engineering equipment with a crane lifting capacity of 200 metric tonnes, deep-hole drilling (up to 1 meter) capabilities, plate rolling capabilities up to 110 milimeters, strip cladding capabilities, orbital welding capabilities, a 308.6 square meters clean room for fabrication of high alloy materials, vertical turret lathes and other machine tools.
The tentative date for the completion of the transaction is 30 April 2021, GMM said in a BSE filing made after market hours yesterday.
Commenting on the acquisition, Tarak Patel, managing director of GMM Pfaudler, said this acquisiton will significantly enhance our capacity and augment our capabilities in heavy engineering and at the same time will free up capacity at our Karamsad facilty to expand our glass lined business.
GMM Pfaudler's branded product lines cover a broad portfolio that includes glass-lined & alloy systems, filtration & drying, engineered column systems, lab & process glass, sealing technology and fluoropolymers. The company caters to customers in the chemical, pharmaceutical and food industries.
Powered by Capital Market - Live News
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.