The company said it will pay 58.46 crore for the proposed assets and the tentative date for the completion of the transaction is April 30, 2021. Following the development, the stock climbed 7.8 per cent to hit a high of Rs 4,550 on BSE.
Managing Director Tarak Patel said the acquisition will significantly enhance capacity and augment capabilities in heavy engineering and at the same time will free up capacity at Karamsad facility to expand our Glass Lined business. “It is a very timely opportunity that fits perfectly with our long term strategy of growing all our business lines,” Patel said.
The facility, spread over 11.9 acres with 7 manufacturing bays, is located in Vatva, Ahmedabad. It is equipped to manufacture a wide range of heavy engineering equipment with a crane lifting capacity of 200 metric tonnes and deep-hole drilling capability of up to 1 meter.
Besides, the facility has plate rolling capabilities of up to 110 millimeters, strip cladding capabilities and orbital welding capabilities. It has a 308.6 square meters clean room for fabrication of high alloy materials, vertical turret lathes and other machine tools.
GMM offers glass-lined & alloy systems, filtration & drying, engineered column systems, lab & process glass, sealing technology and fluoropolymers.
