Wednesday, August 30, 2006
ACE to acquire a sick company
MUMBAI: Action Construction Equipment Ltd (ACE) is close on acquiring a sick company either in China or in Italy to expand its global foot print.
"We are at advanced stages of negotiations with these companies. However, we are yet to decide which one to acquire," its Managing Director S Agarwala told reporters while announcing its initial public offering (IPO) here on Tuesday.
The cost of the acquisition, which includes technology and machinery, is pegged at around Rs 8 crore, he said.
The Haryana-based company has its manufacturing plant in Ballabgarh and earns more than 10 per cent of its total turnover from UAE, Qatar, Oman, Kuwait, South Africa, Kenya, Nigeria and other countries.
Meanwhile, it is also setting up another manufacturing plant at Dudhaula, Haryana, which upon commissioning in January 2007, would help the company to raise its market share in the Rs 500 crore mobile tower crane business segment.
The company would invest around Rs 24 crore for this facility, Agarwala said.
The company plans to offer 46 lakh equity shares of Rs 10 each in the priceband of Rs 110 and Rs 130. The issue, which consitute 25.03 per cent of the fully diluted post-issue paid up capital of the company, will remain open for subscriptions from September one to seven.
Apart from funding acquisitions, capacity expansions and setting up of a new plant, the company plans to use the IPO proceeds to set up a corporate office and a R&D centre at a cost of Rs 13.67 crore.
Karvy Investor Services and UTI Securities are the book running lead managers for the issue, while Karvy Computershare will work as registrar.
"We are at advanced stages of negotiations with these companies. However, we are yet to decide which one to acquire," its Managing Director S Agarwala told reporters while announcing its initial public offering (IPO) here on Tuesday.
The cost of the acquisition, which includes technology and machinery, is pegged at around Rs 8 crore, he said.
The Haryana-based company has its manufacturing plant in Ballabgarh and earns more than 10 per cent of its total turnover from UAE, Qatar, Oman, Kuwait, South Africa, Kenya, Nigeria and other countries.
Meanwhile, it is also setting up another manufacturing plant at Dudhaula, Haryana, which upon commissioning in January 2007, would help the company to raise its market share in the Rs 500 crore mobile tower crane business segment.
The company would invest around Rs 24 crore for this facility, Agarwala said.
The company plans to offer 46 lakh equity shares of Rs 10 each in the priceband of Rs 110 and Rs 130. The issue, which consitute 25.03 per cent of the fully diluted post-issue paid up capital of the company, will remain open for subscriptions from September one to seven.
Apart from funding acquisitions, capacity expansions and setting up of a new plant, the company plans to use the IPO proceeds to set up a corporate office and a R&D centre at a cost of Rs 13.67 crore.
Karvy Investor Services and UTI Securities are the book running lead managers for the issue, while Karvy Computershare will work as registrar.
# posted by mashup @ 10:34 AM 
