The acquisition was announced during trading hours today, 23 February 2012.
Meanwhile, the BSE Sensex was up 45.60 points, or 0.25%, to 18,190.85.
On BSE, 49,000 shares were traded in the counter as against an average daily volume of 85,823 shares in the past one quarter.
The stock hit a high of Rs 373 and a low of Rs 361 so far during the day. The stock had hit a 52-week high of Rs 417.80 on 8 December 2011. The stock had hit a 52-week low of Rs 256.35 on 25 February 2011.
The stock had outperformed the market over the past one month until 22 February 2012, gaining 11.45% compared with the Sensex's 8.40% rise. The scrip had, however underperformed the market in past one quarter, rising 4.29% as against 12.95% rise in the Sensex.
The mid-cap company has an equity capital of Rs 61.38 crore. Face value per share is Rs 10.
Raymond said its auto components business arm, Ring Plus Aqua, acquired Pune-based Trinity India, a forged component manufacturer.
This acquisition marks Ring Plus Aqua's entry into the forging industry, adding to its current portfolio of auto components, which includes flywheel ring gears, flexplate assemblies, integral shaft bearings and sheet metal pulleys.
Rind Plus Aqua acquired majority stake in Trinity India with the signing of the share transfer agreement with the promoters of Trinity in Pune on today, 23 February 2012.
The deal was funded through internal accruals and facilitated by Equirus Capital, the company said.
The Indian forging industry is estimated at around $2.9 billion, while the global industry is valued at over $115 billion.
Announcing the acquisition, Raymond's President, Engineering Business, Harshal Jayavant said, The acquisition of Trinity India is a significant milestone for Rind Plus Aqua, as it marks our entry into forged components. This move significantly strengthens the company's position in the global automotive power train domain. With this acquisition, we are looking at an added revenue of Rs 80 crore during the current financial year.
He added, Our expansion into forgings also provides us an opportunity to look at the fast developing non-auto sectors like power, aviation, defense and nuclear equipment.
Trinity India has four manufacturing locations with an installed forging capacity of 12,500 tons. It employs about 400 people. The company supplies hubs, spindles, connecting rods and similar components to auto majors like Ford, Maruti Suzuki, Tata Motors, Fiat, Bosch, Eaton and Dana, etc.
Ring Plus Aqua manufactures automotive components at two separate locations in integrated factories at Sinnar near Nasik. The company has caters like global giants like GM, Ford, Caterpillar, Cummins, Arrow Engine Company, etc.
On a consolidated basis, Raymond reported a net profit of Rs 60.89 crore in Q3 December 2011 as against net loss of Rs 74.15 crore in Q3 December 2010. Net sales rose 11.7% to Rs 952.08 crore in Q3 December 2011 over Q3 December 2010.
With over 60% market share in India, Raymond is one of the largest integrated manufacturer of worsted fabric in the world. The company comprises of three divisions: Textiles, Engineering and Aviation.