Sona BLW Precision Forgings Ltd. (Sona Comstar) saw its shares surge by nearly 10% after the board approved the acquisition of Escorts Kubota’s Railway Equipment business. The acquisition, valued at ₹1,600 crore, will be executed as a slump sale, with no shareholding or control in Escorts Kubota being acquired by Sona BLW.
Key Details:
- Cost of acquisition: ₹1,600 crore for the ‘Railway Equipment Division’.
- Escorts Kubota’s railway business: Reported revenue of ₹950 crore for FY24, contributing 11% to the company’s overall topline in the June quarter.
As of 9:22 AM, the shares were trading 8.73% higher at ₹700.30 on the NSE.
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