Small cap stock jumps 5% after it’s US subsidiary acquires a controlling stake in a Canada company

Shares of this construction company under the ‘small-cap’ category jumped around 5 percent in Friday’s trading session after it signed an agreement to acquire a 100 percent stake in a company based out in Brampton, Canada. 

With a market capitalization of Rs 8,287.64 crores, the stocks of GMM Pfaudler Limited opened their trading hour at Rs 1,790 and currently trade at Rs 1,843.45, gaining around 4.50 percent compared to the previous closing levels of Rs 1,765.20 apiece. 

Such bullish movements in the company’s stock price were seen after a regulatory filing with the Bombay Stock Exchange (BSE) announced that GMM Pfaudler Limited, through its wholly-owned subsidiary ‘GMM Pfaudler US Inc’, has entered into an agreement to acquire a 100 percent stake in ‘Professional Mixing Equipment Inc’, also known as “MixPro”. 

MixPro is engaged in the business of manufacturing ‘mixing solutions’ for a wide range of industrial applications. The cost of acquisition is 7 million US dollars and the consideration for the stake buy is decided to be a cash consideration. The time period for the completion of the abovementioned acquisition is October 2023. 

The company, on a sequential basis, has outperformed its numbers with the operating revenues going up from Rs 865.95 crores during Q4FY22-23 to Rs 912.27 crores during Q1FY23-24. Moreover, the net profit figures have increased from Rs 36.47 crores to Rs 54.27 crores keeping the timeframe the same. 

The latest shareholding data of the company portrays the Promoters holding a 38.74 percent stake, and, the Foreign Institutional Investors (FIIs) holding a considerable stake of 18.84 percent in the company. 

GMM Pfaudler Limited is a company based in India that is engaged in the business of manufacturing industrial equipment primarily used in the pharma, chemical, and other allied industries. The company serves various sectors including agrochemicals and many other chemical processing industries. 

Written by Amit Madnani 

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