RHI Magnesita India to acquire Hi-Tech's refractory business for Rs621 crore

19 Oct 2022 , 09:42 AM

RHI Magnesita Limited informed that it has executed a BTA with Hi-Tech Chemicals Limited for r acquisition of the refractory business of Hi-Tech. The acquisition shall be by way of a slump sale on a going concern basis for a cash consideration of Rs621 crore.

As per the company, the objective of this acquisition is to enhance its position in the domestic and worldwide flow-control refractory markets by strengthening and expanding its portfolio.

The company expects to complete the said transaction within a period of 3 months from the date of execution of the BTA.

Hi-Tech is engaged in the refractory business, producing and supplying goods such as isostatically pressed ceramics, slide-gate plates, nozzle opening compounds, and tundish Monolithics primarily for the steel industry.

Hi-Tech's revenue for the fiscal year 2021-2022 is Rs270.2 crore, while its profit before tax is Rs70.7 crore.

At around 9.41 AM, RHI Magnesita India was trading at Rs717.15 down by 0.26% from its previous closing of Rs719.05 on the BSE. The scrip opened at Rs726.35 and touched intraday high and low of Rs732.20 and Rs715.30 respectively. 

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