Electrotherm India Ltd, a Gujarat-based manufacturer of frequency induction melting furnaces, is acquiring Hans Ispat Pvt Ltd and its subsidiary Shree Hans Paper Ltd for a consideration of Rs 60 crore.
This is the second acquisition by Electrotherm in the last one month. It earlier acquired Shree Ram Electrocast Pvt Ltd, a Kolkata-based pig iron manufacturing company for $19.11 million (around Rs 85 crore) in April.
Electrotherm has already entered into an agreement with Hans Ispat for the acquisition, it informed the Bombay Stock Exchange. Hans Ispat is also a Gujarat-based company and is engaged in manufacturing steel products. The transaction is expected to be completed in about four months.
Hans Ispat currently has a manufacturing facility of 84,000 tonne per annum (TPA) of billet, around 1.2 lakh TPA of TMT rotting mitt, and another 72,000 TPA of stainless steel rolling mill.
Electrotherm was incorporated as an engineering metal melting industry in 1983. It currently has operations in 31 countries around the world globally. The company is primarily operational in countries including Middle East, Turkey, Pakistan, Bangladesh & Africa, and claims over 50% market share in induction melting equipments space in India.
The shares of the company were traded at Rs 313.50, up by Rs 10.85 or 3.58% at 2 pm in the BSE today.