Kennametal India rose 1.07% to Rs 834.95 after the company's board approved the merger of WIDIA India Tooling, a wholly-owned subsidiary of the company with its holding company, Kennametal India.
Widia India Tooling is engaged in trading in heard metal products and machine tools for the manufacturing industries.
This merger will enable Kennametal India to streamline the go-to market model and enhance its relevance to the customers in India by offering full range of solutions from Kennametal and WIDIA branded products. The merger would enhance market coverage, reach to customers and brings in techno-commercial synergies to service our customer requirements in a more effective manner.
The board approved 1 April 2021 as the appointed date for merger, the company said in a statement after market hours on Friday, 4 December 2020.
Kennametal India's consolidated net profit dropped 35.6% to Rs 13.20 crore on a 9.3% decline in net sales to Rs 197.10 crore in Q1 September 2020 over Q1 September 2019.
Kennametal India manufactures hard metal products, mining tools, special-purpose machines, metal castings, formings, jigs and fixtures. The company exports its products to Japan, Germany and the south-east Asian countries.
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