You are here: Home » PTI Stories » National » News
Business Standard

Mahindra CIE to buy Bengaluru's Bill Forge for Rs 1,331.2 cr

Press Trust of India  |  New Delhi 

Mahindra group's auto component arm Mahindra CIE Automotive today said it will acquire Bengaluru-based Bill Forge for Rs 1,331.2 crore.

The company's board, which met today, approved 100 per cent acquisition of Bill Forge Pvt Ltd and authorised signing of acquisition agreement, Mahindra CIE Automotive said in a regulatory filing.

"The acquisition would substantially increase revenue and profitability of the company from Asian markets and reinforce its position as one of the leading global forgings player," it added.

The acquisition also leads to diversification of the company's business portfolio including entry into the two-wheeler segment, it added.

The acquisition is proposed to be completed by end of October 2016, it said.

As on March 31, 2016, Bill Forge had posted revenues of Rs 582.3 crore and profit after tax (PAT) of Rs 51.4 crore.

As part of the deal, Mahindra CIE would issue 31,991,563 shares to the shareholders of Bill Forge besides it will also issue 22,500,000 shares to Participaciones Internacionales Autometal, one of the promoters of the Bengaluru-based firm.

Founded in 1982, Bill Forge is a market leader in precision forging. It has six manufacturing facilities in the country across Bangaluru, Coimbatore amd Haridwar.

It is also setting up a plant at Celaya in Mexico. It supplies to a number of domestic and and global two-wheeler and passenger vehicle makers.

Mahindra CIE Automotive's board also approved raising of Rs 700 crore by way of issuing securities, including qualified institutions placement (QIP).

Mahindra CIE Automotive scrip today ended at Rs 190.90 apiece on the BSE, down 3.63 per cent from previous close.

(REOPENS DCM 82)

Commenting on the deal, Mahindra CIE Automotive (MCIE) CEO JesusMaria Herrera said: "We are impressed with the high growth and profitable business built by them (Bill Forge). We believe that their integration with MCIE, will provide further opportunities for growth for both MCIE and BFPL."


Bill Forge Managing Director Anil Haridass said: "We see a strong cultural and value fit between the CIE group and our company. We believe that the combination with MCIE will be beneficial for all stakeholders - customers, suppliers and employees."

MCIE is a large diversified auto components supplier formed as a result of partnership between Mahindra Group and CIE Automotive S A of Spain.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Mon, September 12 2016. 18:48 IST
RECOMMENDED FOR YOU