Pitti Engineering Limited informed the exchange that it had signed an agreement with Dakshin Foundry Private Limited (“DFPL”) and its shareholders to acquire 100% of the equity share capital of DFPL at an equity value of ₹ 153.12 crores.
The cost of acquisition comprises of the business value and working capital of DFPL on the acquisition date. DFPL has a positive cash and bank balance of ₹ 42.71 Crores and Nil debt as on 30th June 2024. The Company proposes to complete the acquisition within 15 days of signing the definitive agreement.
DFPL is engaged in the manufacture of high-quality casting in ductile iron, grey iron, low carbon, alloy steel grades and simo iron castings along with value added services like pattern making.
DFPL has two manufacturing facilities located in Hosakote, Bangalore. DFPL has an installed capacity of 4200 Tonnes Per Annum.