The acquisition would help Renold Group to promote its product range into India's rapidly growing market place, take advantage of existing export markets and exploit new product , market and export opportunities, Renold said.
Renold has placed 70 lakh new ordinary shares at 76 per share with institutional investors subject to LGB shareholder approvals and transfer of regulatory licences, Renold said in a statement.
LGB is a listed company in India. To fund the acquisition, Renold Group and LGB have agreed to contribute to the equity share capital of Renold India in the proportion of 75 per cent and 25 per cent, respectively.
LGB has a workforce of 500 people.