J S Auto enters into Business Transfer Agreement with Indo Shell Mould Ltd to acquire ISML's SEZ Unit

Bharat Forge Limited (BSE: 500493, NSE: BHARATFORG) today announced that J S Auto Cast Foundry India Private Limited ("JS Auto"), its step-down subsidiary has entered into Business Transfer Agreement with Indo Shell Mould Limited ("ISML") for acquiring their SEZ Unit in SIPCOT, Erode.

The SEZ Unit with a capacity of 42,000 MTPA, supplies fully machined critical castings to marquee customers in the automotive industry and will operate as the 3rd manufacturing unit of JS Auto. This takes the capacity at JS Auto to 1,42,000 MTPA.

This acquisition strengthens JS Auto's presence in the castings sector, expands the product offering & client base and enhances its footprint in the Indian manufacturing landscape. The acquisition will be EPS accretive from the 1st year itself.

The closing of the transaction is subject to customary conditions and regulatory approvals.

Shares of Bharat Forge Limited was last trading in BSE at Rs. 884.15 as compared to the previous close of Rs. 879.55. The total number of shares traded during the day was 26111 in over 1386 trades.

The stock hit an intraday high of Rs. 891.95 and intraday low of 878.90. The net turnover during the day was Rs. 23129286.00.

Source : Equity Bulls

Keywords

BharatForge INE465A01025 JSAutoCastFoundryIndia BTA IndoShellMould SEZUnit SIPCOT Erode