Azad VTC Private Limited (a Subsidiary Company of Azad Engineering Limited) has entered into an asset purchase agreement and related documents with VTC Surface Technologies Private Limited, and Mr. V. Ravi Kumar for the purchase of certain assets of VTC Surface Technologies Private Limited related to offering advanced wear, corrosion and heat resistant coatings. These coatings are a critical application on the components which operate in extremely severe conditions for Power Generation, Aerospace & Defence and Oil & Gas. VTC Surface Technologies Private Limited is approved to perform these coatings by OEMs that operate in the Power Generation, Aerospace & Defence and Oil & Gas sectors. The acquisition is expected to complement and enhance the business of Azad Engineering Limited offering complete turnkey surface coating solutions for its OEM customers. This acquisition is also expected reduce AZAD Engineering Limited's dependency on approved third party companies for surface coatings and eventually lead to more opportunities & margin expansion in the longterm. The parties and Azad Engineering Limited have also entered into agreements pursuant to which Mr. V. Ravi Kumar would become a shareholder and employee of Azad VTC Private Limited.
Cash consideration of INR 1,92,00,000 (Indian Rupees One Crore Ninety-Two Lakhs only) is payable by Azad VTC Private Limited to VTC Surface Technologies Private Limited.
Upon completion of the transactions contemplated under the shareholders' agreement dated May 9, 2024, Mr. V. Ravi Kumar would hold 49% shares of Azad VTC Private Limited and the remaining 51% shall be held by Azad Engineering Limited.
Shares of Azad Engineering Limited was last trading in BSE at Rs. 1291.00 as compared to the previous close of Rs. 1274.75. The total number of shares traded during the day was 5529 in over 725 trades.
The stock hit an intraday high of Rs. 1313.30 and intraday low of 1255.10. The net turnover during the day was Rs. 7162500.00. |
