Multi-product engineering firm Innoventive Industries Ltd has signed an agreement with Innovative Technomics Pvt Ltd (ITPL) to acquire 51 per cent stake. Innoventive has valued ITPL’s business at Rs 23 crore, as per a BSE filing.
The balance 49 per cent stake in ITPL will be held by Salunkhe Group. In a parallel transaction, ITPL has agreed in-principle to acquire 100 per cent stake in Summit Corporation Pvt Ltd. Post transaction, Summit will become a step down subsidiary of Innoventive.
This acquisition will extend Innovative's footprint in electrical and electro-mechanical products market.
Incorporated in 1993, Innovative Technomics is a prominent player in specialty fields such as high voltage soft starters, high speed testing equipment and linear motor systems.
Pune-based Innoventive Industries Ltd (formerly known as Arihant Domestic Appliances Pvt Ltd) is an automobile parts manufacturing company, which specialises in processing various types of steel.
It has five manufacturing facilities situated across Pune district and Silvassa and markets its products in the domestic as well as export markets.
In January this year, it acquired 85 per cent stake in US-based Salem Steel North America LLC for $4.67 million through its step sown subsidiary Salem Steel NA LLC, from existing promoters.
Innoventive is backed by Standard Chartered Private Equity Ltd, which holds 14 per cent stake in the company. It had started building its exposure in February 2011 when it invested $10.19 million to pick 10.14 per cent stake and later invested around $5.5 million in two separate tranches to raise its holding.
(Edited by Prem Udayabhanu)