To acquire potential businesses while building upon its India organic business
Ducon Infratechnologies Limited (BSE:534674, NSE: DUCON)announced that the management of the Company has decided to pursue its inorganic strategy for accelerated growth actively. This strategy would not only fast-track Ducon India's organic growth but would also add critical size and capabilities to its current business.
Commenting on this announcement, Mr Aron Govil, Chairman of the Company said, "While our India growth strategy is likely to continue its growth momentum, the global inorganic strategy will add stimulus to growth scale and capabilities to our business. We firmly believe that adding these new growth levers will strengthen our fundamental capabilities apart from improving our earnings and financial returns." He further added, " As we approach closure of our merger activity, we are confident of Ducon Infratechnologies Limited being in a favoured position to achieve its targetted growth through a well balanced organic and inorganic strategy."
Strategic Rationale for the inorganic Strategy
- Inorganic Strategy to make Ducon a significant player in the Global engineering space
- New businesses to strengthen Ducon's existing operations, while adding new geographies, technologies, capabilities and size.
- Combined businesses to have potential cross leverage opportunities which will enhance value for the shareholders
Targetted Acquisition candidates
- Potentially looking at companies predominantly in North America and Europe in similar or related market sectors and a strong market position.
- Targetted Companies to have annual sales ranging from $5 -$50 million.
- Robust fundamentals given its business activities, track record, growth potential and management credibility.
- Preference to firms that are entrepreneurially driven "privately owned", ideally with existing top management personnel in place and who are looking for a dynamic and financially robust growth platform, combined with a decentralised management model and entrepreneurial business environment.
Shares of Ducon Infratechnologies LTD. was last trading in BSE at Rs.44.9 as compared to the previous close of Rs. 44.3. The total number of shares traded during the day was 116092 in over 815 trades.
The stock hit an intraday high of Rs. 46.5 and intraday low of 44.1. The net turnover during the day was Rs. 5328764.