Smith and Founders to reduce debt through stake sale

It is in the advanced stage of talks with a couple of European automobile ancillary companies

Castings producer Smiths and Founders India (SMFIL) is in the advanced stage of talks for a strategic tie-up with a couple of European automobile ancillary companies for exports of auto ancillaries.

Confirming the development, a company official said, "Once the terms of the strategic tie-up are finalised, SMFIL would divest a part of its stake in the company to raise funds for setting up a modern casting facility at its existing unit in Karnataka. Apart from that, the company will also utilise a part of the fund for retiring its debt."

With 2.66 per cent decline, SMFIL share closed on Thursday at Rs 9.15 apiece at the BSE.

 

SMFIL is currently engaged in manufacturing of castings, forgings and machined component used in automobile, agriculture, mining, power transmission and hydraulic sectors. The company has a market cap of Rs 93.33 crore.