Mahindra CIE gains on completing acquisition of Aurangabad Electricals

Mahindra CIE Automotive rose 1.41% to Rs 226.20 at 11:43 IST on BSE after the company said it has completed the acquisition of Aurangabad Electricals.

The announcement was made after trading hours yesterday, 9 April 2019.

Meanwhile, the S&P BSE Sensex was down 91.15 points, or 0.23% to 38,848.07.

On the BSE, 7,378 shares were traded in the counter so far compared with average daily volumes of 5,819 shares in the past two weeks. The stock had hit a high of Rs 230.50 and a low of Rs 225.85 so far during the day. The stock hit a 52-week high of Rs 301.80 on 11 September 2018. The stock hit a 52-week low of Rs 208.95 on 16 April 2018.

Mahindra CIE Automotive said it has completed the acquisition of 100% issued and outstanding share capital of Aurangabad Electricals (AEL) from the respective shareholders and AEL has become a wholly owned subsidiary of the company.

Earlier on 12 March 2019, Mahindra CIE Automotive announced that its board resolved to acquire the business of AEL through acquisition of 100% of equity shares for an enterprise value of Rs 875.60 crore, which includes a future deferred payment estimated upto Rs 62.20 crore.

Founded in 1985, AEL is a manufacturer of automotive aluminum die casting products based in Aurangabad, India, with five manufacturing facilities in the country across Aurangabad, Pune and Pantnagar. It manufactures a variety of body, brake and engine parts through high pressure die casting as well as gravity die casting processes. AEL also has capabilities for machining, heat treatment, powder coating, assembly and leak testing, along with a modern tool room.

Mahindra CIE Automotive reported net loss of Rs 89.48 crore in Q4 December 2018 as against net profit of Rs 14.65 crore in Q4 December 2017. Net sales rose 9.54% to Rs 614.91 crore in Q4 December 2018 over Q4 December 2017.

Mahindra CIE Automotive is a multi-technology automotive components supplier. It is a subsidiary of the CIE Automotive group of Spain; an industrial group specialised in supplying components and subassemblies for the automotive market, which has presence across the globe.

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