Announces a substantial acquisition of the Atraco Group (est. in 1986) at an attractive 0.5x P/S
During the Q1FY24 concall management had indicated they will deploy the excess cash towards an inorganic opportunity if they could foresee market traction in H2 FY24 and a strong FY25. This news could be an indication of what is to come.
- Large scale production with high machine capacity
- Possibility of future expansion
- Highly skilled workers & high operational efficiency
- Established global brands as customers
- Duty free access to USA & EU markets (cost advantage)
The deal involves a group of companies operating across various geographies and thus require several regulatory approvals. However, deal is expected to be concluded by October – December 2023 (Q3 FY24).
To give you a perspective on the Deal – Its BIG !!!
Approx. INR nos.
At a consolidated level this is a substantial deal, i.e., about +60% Revenue/PAT as a % of FY23 Gokaldas Exports nos.
Investor’s call is scheduled tomorrow. If someone attends, would appreciate if you could share some key highlights.
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