Pitti Engineering Ltd. (PEL) stated it had signed a definitive settlement with Bagadia Chaitra Industries Private Ltd. (BCIPL) and its shareholders to acquire 100% of the fairness share capital of BCIPL at an enterprise valuation of ₹124.92 crore.
“The cost of acquisition would be arrived at by adjusting the enterprise value for the net debt and working capital changes on the closing date and subject to other adjustments that are mutually agreed between the parties,” PEL stated in a press release.
As a part of the general consideration, PEL will infuse upto ₹40 crore as funding into BCIPL on time limit to repay the prevailing debt in BCIPL, it stated.
Akshay S Pitti, Vice-Chairman and Managing Director, PEL stated, “We have always believed in continuously adding production capacity at strategic locations and enhancing our value proposition to our valued customers.”
“The acquisition of BCIPL is an important step in this direction as it is strategically relevant, provides enhanced operational strength and adds customer base,” he added.
BCIPL is a producer {of electrical} laminations and aluminum die solid rotors for AC/DC motors, alternators, pumps, dwelling home equipment and electrical car industries with main geographical publicity to south Indian market.
It operates out of Tumkur district, Karnataka the place it has manufacturing amenities with an put in capability of 18,000 tonnes every year.
PEL stated this acquisition would assist it broaden its presence in South India, add to the general asset base and manufacturing capability, present entry into new finish use sectors and add new prospects.
