Ramkrishna Forgings Divests GAISL to Yatra Online for ₹128 Crore

2 Sep 2024 , 03:51 PM

Ramkrishna Forgings Ltd has decided to divest its entire stake in its wholly-owned subsidiary, Globe All India Services Ltd (GAISL), to Yatra Online Ltd for ₹128 Crore. The Board of Directors approved this divestment during their meeting on September 2.

Once the transaction is completed, GAISL will no longer be a subsidiary of Ramkrishna Forgings. The deal is expected to conclude within three months, contingent upon meeting the conditions outlined in the Sale and Purchase Agreement (SPA) executed on September 2.

At the time of writing on September 02, 2024 at 3:50 pm, shares of Ramkrishna Forgings Ltd closed at ₹955 which is a 1.34% dip than the previous close. Ramkrishna Forgings Ltdstock has gained a total of 33% in the last one year, and almost 34% gain since the beginning of the year.

Yatra Online Ltd, a public company listed on the BSE and NSE, provides travel booking services both in India and internationally.

As of March 31, 2024, GAISL contributed ₹250.34 Crore, representing 6.33% of Ramkrishna Forgings’ consolidated turnover. In the same meeting, Ramkrishna Forgings approved a capital expenditure plan to expand its aluminium forging capacity.

The plan involves adding 3,000 MT per annum to the existing capacity, with the new capacity expected to become operational by the second quarter of FY26.

The ₹57.50 Crore investment required for this expansion will be covered through internal funds, with potential additional funding through debt if necessary.

This investment aims to strengthen the company’s presence in the aluminium forging sector, enhance its domestic and export market share, and cater to the growing electric vehicle (EV) industry.