The shares of Craftsman Automation zoomed 13.87% to reach a record high of ₹ 3,710.95 apiece on the National Stock Exchange (NSE). Its shares were quoted at ₹ 3635.00 apiece at 12:31 PM on Friday.
The engineering company informed the bourses that it has entered into a definitive agreement on 29th December 2022, to acquire 8,57,65,631 equity shares representing 76% of the total paid-up equity share capital of DR Axion India Private Limited (DRAIPL), for a cash consideration of ₹ 375 crores.
The acquisition is expected to be completed before March 31, 2023. Once the transaction is completed, DRAIPL will be a subsidiary of Craftsman Automation Ltd.
DRAIPL was incorporated in December 2006 and it manufactures aluminum cylinder heads, a critical auto component that is used in passenger vehicles as an outer shell of internal combustion engines. It has a single manufacturing facility in Chennai, Tamil Nadu, and its customers are leading automobile original equipment manufacturers selling passenger vehicles in India. It had a turnover of ₹ 715.942 crores in FY 2021-22
Craftsman Automation started as a small-scale industry in Coimbatore, Tamil Nadu and has grown to become a leader in precision manufacturing in diverse fields. It manufactures several components and sub-assemblies on a supply and job-work basis according to client specifications in the automotive, industrial, and engineering segments.
It is a small-cap company with a market capitalization of ₹ 6,885 crores. The company’s shares gave stellar returns to its investors as they rallied by 58.84% this year. They gave multibagger returns of 165.87% since its listing. Therefore, if an investor would have invested ₹ 1 lakh in the company’s shares at that time, the value of their holdings would have been ₹ 2.66 lakhs today!
Written by Simran Bafna
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