GMM Pfaudler surges 8% on acquiring majority stake in parent firm

The company expects to complete the transaction by November this year

Shares of GMM Pfaudler rose as much as 8.18 per cent to Rs 6,360 on the BSE on Friday after the process equipment manufacturer acquired a 54 per cent stake in its parent firm Pfaudler Group for a consideration of around $27.4 million.

GMM, which supplies process equipment to pharmaceutical and chemical industries, has signed definitive agreements to acquire a majority stake in Pfaudler Group from the private equity firm Deutsche Beteiligungs AG Fund VI (DBAG) for the stake.

"As per the agreements, GMM, (directly and through its subsidiary Mavag AG), and the Patel family will acquire 54 per cent and 26