M&A

M&A

Pitti Engg to acquire electrical laminates maker Bagadia Chaitra for Rs.165-Cr

Press Release   BSE Announcement  

Publicly-listed, Hyderabad-based Pitti Engineering Ltd (PEL) is to acquire 100% of the equity share capital of Bagadia Chaitra Industries Private Limited (BCIPL) at an enterprise valuation of INR 124.92 crore. In addition, PEL will infuse up to INR 40 crore as new capital into BCIPL, which will be used to repay its existing debt.BCIPL, a manufacturer of electrical laminations and aluminium die cast rotors for AC/DCmotors, alternators, pumps, home appliances, electrical vehicles etc. It operates out of Tumkur district of Karnataka where it has its manufacturing facilities with an installed capacity of 18,000 tonnes per annum. For FY23, it had reported revenue from operations of INR 264.07 Cr and a PBT of INR 6.19 Cr.The acquisition would enable PEL to broaden its presence in South India, add to the overall asset base and production capacity, enter into new end use sectors and add new customers.Singhi Advisors acted as financial advisor, while Transaction Square issued the valuation report and conducted the Financial & Tax due diligence for the acquirer. DSK Legal was the legal advisor to the acquirer.