GMM Pfaudler enters pact to acquire manufacturing facility in Telangana

A consideration of 6.25 million euros will be paid for the proposed transaction subject to completion of the final due diligence and other documentation.

GMM Pfaudler has entered into a binding term sheet with De Dietrich Process Systems India to acquire its facility at Hyderabad in Telangana. Spread across an area of 6 acres, the facility is equipped to manufacture glass lined equipment. GMM Pfaudler will pay 6.25 million euros for the proposed transaction, subject to completion of the final due diligence and other documentation.

Commenting on the acquisition, Tarak Patel, managing director of GMM Pfaudler said "We are happy to announce this acquisition as it will give us access to ready-made Glass Lined Equipment manufacturing capacity which will further strengthen our presence in the region." He further added "We are now well poisedto take advantage of the expected investment in the upcoming Pharma City in Hyderabad and maintain our market leadership position in India."

Shares of GMM Pfaudler rose 2.10% to Rs 4,180. On the technical front, the stock's RSI (relative strength index) stood at 55.936. The RSI oscillates between zero and 100. Traditionally, the RSI is considered overbought when above 70 and oversold when below 30.

The stock was trading above its 50-day moving average (DMA) placed at 3,888.89 and its 200-day moving average (DMA) placed at 2,531.18.

On a consolidated basis, the firm's net profit declined 12.8% to Rs 11.60 crore on 5.3% decline in net sales to Rs 131.78 crore in Q4 March 2020 over Q4 March 2019.

GMM Pfaudler is a supplier of process equipment to the pharmaceutical and chemical industries. The company has a diversified product portfolio which includes mixing systems, filtration & drying equipment, engineered systems and heavy engineering equipment.

Powered by Capital Market - Live News