Shriram Pistons share price rises 6% on acquisition update; detail here

The stock surged ₹5.71 to touch an intraday high of ₹2,775 per share on the NSE, merely ₹10 shy of its 52-week high of ₹2,785, scaled last month on October 8

Shares of Shriram Pistons & Rings were ruling higher on the bourses on Friday, December 5, following the company’s announcement of updates on acquisitions. The stock surged 5.71 per cent to touch an intraday high of ₹2,775 per share on the NSE, merely ₹10 shy of its 52-week high of ₹2,785, scaled last month on October 8.

 

Buying interest persisted through the morning trade. At 9:52 AM, DIC India shares were trading at ₹2,758, up 5.06 per cent from the previous close of ₹2,625.10. In comparison, the benchmark Nifty 50 was trading 15 points, or 0.06 per cent higher, at 26,049. A combined total of 0.2 million shares of the company worth around ₹38 crore had exchanged hands till that time.

 

 

The company’s market capitalisation stood at ₹12,158.63 crore on the NSE as of December 5.

Shriram Pistons & Rings announces update on acquisitions

The company has announced that it has entered into a Share Purchase Agreement with Grupo Antolin Irausa, S.A.U. and Grupo Antolin Ingenieria, S.A.U.

 

“We hereby inform that Shriram Pistons & Rings Limited (“SPRL” or “the Company”) has entered into a Share Purchase Agreement with Grupo Antolin Irausa, S.A.U. and Grupo Antolin Ingenieria, S.A.U. (collectively referred to as “Sellers”) in relation to the direct and indirect acquisition of all outstanding shares of the following companies:

 

Antolin Lighting India Private Limited (T1)

 

Grupo Antolin India Private Limited (T2)

 

Grupo Antolin Chakan Private Limited (T3), a subsidiary of T2

 

” said Shriram Pistons & Rings in the exchange filing.

 

According to the filing, the SPRL Group, in line with its strategic objective of enhancing capabilities and expanding its presence in the automotive components industry, has entered into the proposed transaction involving certain Grupo Antolin Companies. These entities are leading providers of automotive interior solutions and manufacture and sell products such as headliner substrates, modular headliners, sun visors, door panels, center floor consoles, pillar trim, front-end carriers (exterior plastic parts), overhead consoles, dome lamps, ambient lighting, touch panels, and capacitive pads to major Original Equipment Manufacturers (OEMs) across India.

 

The consummation of the proposed transaction, the company said, shall be subject to the fulfillment of closing conditions and completion of closing deliveries as stipulated under the Share Purchase Agreement.

 

“Upon completion of the transaction, the SPRL Group will be able to expand into product areas independent of powertrain technologies, strengthen its position in the auto components industry, and create long-term value for stakeholders. As part of this proposed transaction, SPRL will enter into a Technology Licensing Agreement with Grupo Antolin to ensure continuous access to advanced technologies and support for new product development,” said the company in the exchange filing.