Ramkrishna Forging, a supplier of rolled, forged, and machined products, on Monday announced that it has entered into Share Purchase Agreement to sell 100 per cent stake in its wholly-owned subsidiary, Globe All India Services Limited to Yatra Online Limited. The transaction will be done for a cash consideration of Rs 129 crore (net of debt).
Globe All India Services has evolved into a leading Hospitality Management Company, with a diversified portfolio spanning Corporate Travel, MICE (Meetings, Incentives, Conferences and Exhibitions), Leisure and Car Rental, it said in a regulatory filing.
Naresh Jalan, Managing Director, Ramkrishna Forgings Ltd, said, “As part of our strategic product rationalization initiative, we have decided to focus on our core segments particularly in forged, machined and fabricated products for diverse sectors such as Automotive, Railways, Oil & Gas and Power, among others, where the company see a great potential for growth and expansion. This move not only aligns with our long-term objectives but also enables us to strengthen our balance sheet. This division was built by addressing market needs of the time and its success reflects the dedication and hard work of our outstanding team. As the business transitions to new ownership, we express our sincere gratitude to everyone who played a role in its growth.”
The company further added that it will continue to concentrate on long-term growth in its primary sectors and continue delivering value to all our stakeholders. “The cash proceeds from this transaction will further deleverage and strengthen our Balance Sheet,” it said.
The transaction is expected to close within this quarter.
From: financialexpress
Financial News
