|
|
EID Parry India now bags GMR Industries
|
|
|
|
Top Stories |
|
|
|
|
SME Times News Bureau | 26 Apr, 2010
In line with the Murugappa group's vision of growing and expanding its sugar business, the Rs.1,147 crore turnover EID Parry (India) Ltd will acquire majority stake in the Rs.235 crore GMR Industries.
EID Parry chairman A.Vellayan and GMR Holding director K.Balasubramanian Sunday signed a definitive agreement whereby EID Parry would acquire a majority stake in GMR Industries.
"The deal would involve a total cash outgo of around Rs.120 crore for us - payment to GMR Holdings, the promoters of GMR Industries as well as to the public shareholders as an open offer would have to be made," EID Parry vice-President (finance) P. Gopalakrishnan said.
The open offer to be made Monday will be at Rs.57.35 per equity share of GMR Industries.
According to EID Parry officials, the company is expected to acquire anything between 51 and 65 percent of GMR Holding's stakes in the Rs.19.96 crore equity of GMR Industries.
Last year, GMR Industries posted a net loss of Rs.58.43 crore. Its scrip closed at Rs.111 in the National Stock Exchange Friday.
EID Parry will be funding the acquisition from its internal accruals.
"This acquisition strengthens our position as one of the leading sugar companies in India and increases the number of integrated complexes. It thus provides EID Parry a platform to tap the sugar markets other than southern India," said Vellayan.
GMR Industries is an apt fit for EID Parry as it owns integrated sugar complexes in Karnataka and Andhra Pradesh with a combined installed crushing capacity of 11,000 tonne crushing per day (TCD), 46 MW of co-generation and 95 kilo litres per day (KLPD) of distillation.
Post acquisition, EID Parry's sugar crushing capacity will go up 32,500 TCD, co-generation 146 MW and distillation 230 KLPD.
According to Gopalakrishnan, GMR Industries has a debt of Rs.500 crore and the total enterprise value will be around Rs.600 crore.
Last August, EID Parry gained a foot hold in Karnataka market with the acquisition of 76 percent stake in the Bangalore-based Sadashiva Sugars for around Rs.50 crore.
Sadashiva Sugars has a 2,500 TCD plant at Nagaral Nainegali, Bagalkot district in Karnataka and also has a co-generation capacity of 15.5 MW.
According to Gopalakrishnan, the operational integration of Sadashiva Sugars is going on in a smooth manner.
|
|
|
|
|
|
|
|
|
|
|
|
|
Customs Exchange Rates |
Currency |
Import |
Export |
US Dollar
|
66.20
|
64.50 |
UK Pound
|
87.50
|
84.65 |
Euro
|
78.25
|
75.65 |
Japanese
Yen |
58.85 |
56.85 |
As on 13 Aug, 2022 |
|
|
Daily Poll |
|
|
PM Modi's recent US visit to redefine India-US bilateral relations |
|
|
|
|
|
Commented Stories |
|
|
|
|
|
|
|
|