Himachal based forgings and gear maker Him Teknoforge together with another Baddi-based autocomponent maker Globe Precision Industries Pvt Ltd and other associates has entered into an agreement with Vadodara-based gear maker Gujarat Automotive Gears Ltd (GAGL) to acquire 55 per cent stake in the company.
In a filing to the Bombay Stock Exchange (BSE) GAGL has said that under the terms of the agreement, the acquirers will purchase the shares of GAGL at a price of Rs 1137 per fully paid up equity share aggregating to Rs 21.88 crore.
The transaction would either be executed as a block deal on the floor of the exchange or as off-market transaction.
As a part of the arrangement, Him Teknoforge Ltd (HTL) alongwith Globe Precision Industries Pvt Ltd (GPIPL) and Vinod Aggarwal and Asha Aggarwal, promoters of HTL have made an open offer to acquire upto 91,000 equity shares from GAGL shareholders. SMC Capitals Ltd is the manager to the offer.
Post the transaction, the shareholding of Naresh Kothari, managing director of GAGL would come down from 43.68 per cent to 15.21 per cent, while that of Tejas Kothari, part of promoter group of GAGL would be down to nil from 26.53 per cent.
Kothari was unavailable for comment.
GAGL was incorporated in 1971 and makes auto and tractor components under the brand KAG. The company's net revenue in FY13 was Rs 25 crore, with a profit after tax of Rs 4 crore.
HTL, the flagship company of Him Group, had started with manufacturing of forgings and later set up a facility to make gears. It supplies to major original equipment makers like Ashok Leyland, Swaraj Mazda, Escorts, Bharat Gears, Mahindra and Mahindra.
GPIPL, on the other hand, is engaged in the manufacturing of axles, gears and shafts for tractors and other automotive applications.
The company has two manufacturing units in Baddi and Pant Nagar Rudrapur (Himachal Pradesh).
GPIPL's major clientele includes International Tractor Ltd, Indo Farm Tractors & Motors Ltd, Preet Tractors Pvt Ltd, Tractors and Firm Equipments Ltd Chennai and Ashok Leyland Ltd, among others.
