Bharat Forge's subsidiary to acquire SEZ unit of Indo Shell Mould

3 Jan 2023 , 12:50 PM

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

As per the filing, 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, the company said in a filing with the Securities and Exchange on Monday.

It further added that 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, the company informed.

On Tuesday, at around 12:52 PM, Bharat Forge was trading at Rs875.85 per share lower by 0.94% on the BSE.

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