GMM Pfaudler gains 8% on acquiring HDO Technologies' assets for Rs 58 crore

The facility is located in Vatva, Ahmedabad and is equipped to manufacture a wide range of heavy engineering equipment

Shares of GMM Pfaudler rallied 8 per cent to Rs 4,550 on the BSE in intra-day trade on Wednesday after the company said it has acquired assets of HDO Technologies in liquidation for a total consideration of Rs 58.46 crore.

The acquisition will significantly enhance the company’s capacity and augment capabilities in heavy engineering and free up capacity at the company’s Karamsad facility to expand glass-lined business; a very timely opportunity that fits perfectly with our long term strategy of growing all business lines, the management said.

GMM Pfaudler in a press release said the company has participated in the e-auction process for the sale of assets (factory land, building, plant and machinery, office equipment, computers, furniture and fixtures, vehicles and capital work in progress) owned by HDO Technologies (in liquidation) in accordance with the process memorandum dated February 23, 2021 issued by HDO Technologies’ Liquidator under the provisions of Insolvency and Bankruptcy Code (IBC), 2016, vide order of Hon’ble National Company Law Tribunal, Mumbai bench, dated June 28, 2018, and was declared as the successful bidder by the Liquidator.

This facility, spread over 11.9 acres with 7 manufacturing bays (built-up area of 23,617 square meters), is located in Vatva, Ahmedabad and is equipped to manufacture a wide range of heavy engineering equipment with a crane lifting capacity of 200 metric tonnes, deep-hole drilling (up to 1 meter) capabilities, plate rolling capabilities up to 110 milimeters, strip cladding capabilities, orbital welding capabilities, a 308.6 square meters clean room for fabrication of high alloy materials, vertical turret lathes and other machine tools.

A consideration of Rs 58.46 crore is being paid for the proposed assets and the tentative date for the completion of the transaction is April 30, 2021, the company said.