Shares of Craftsman Automation Ltd. surged on Tuesday towards its record high, after the company signed an MoU for a potential acquisition.The auto parts producer on Monday (June 24) said it has signed a Memorandum of Understanding (MoU) with Sunbeam Lightweighting Solutions Private Ltd and Kedaara Capital Fund II LLP.The company signed the MoU to acquire the whole or part of the business of Sunbeam, excluding certain specific assets situated in Gurugram.
The acquisition could be done in one or more tranches, the exchange filing said.The proposed transaction is contingent upon the completion of due diligence, approval from Craftsman's Board of Directors, execution of definitive documents, and fulfilment of other customary legal requirements.
It is known for producing gears, heavy parts, sheet metal equipment, special purpose machines, engineered components and assembly.Shares of Craftsman Automation gained as much as 9.6% to ₹5,297 on Tuesday.
The stock has snapped a three-day losing streak post this move.Despite this surge, the stock is yet to recover its losses for 2024, still down 2% on a year-to-date basis.
However, since its listing in March 2021, the stock has risen 250% from its IPO price of ₹1,490 per share.
Shares of Craftsman Automation Ltd. surged on Tuesday towards its record high, after the company signed an MoU for a potential acquisition.The auto parts producer on Monday (June 24) said it has signed a Memorandum of Understanding (MoU) with Sunbeam Lightweighting Solutions Private Ltd and Kedaara Capital Fund II LLP.The company signed the MoU to acquire the whole or part of the business of Sunbeam, excluding certain specific assets situated in Gurugram. The acquisition could be done in one or more tranches, the exchange filing said.The proposed transaction is contingent upon the completion of due diligence, approval from Craftsman's Board of Directors, execution of definitive documents, and fulfilment of other customary legal requirements."Completion of the Proposed Transaction remains subject to inter alia, completion of due diligence, final approval of the Board of Directors of the Company, execution of definitive documents, and completion of other customary conditions as may be required under law," Craftsman Automation said.No further details on the timeline or the consideration to be paid for the acquisition was shared by the company.Craftsman Automation is a manufacturer of automobile parts. It is known for producing gears, heavy parts, sheet metal equipment, special purpose machines, engineered components and assembly.Shares of Craftsman Automation gained as much as 9.6% to ₹5,297 on Tuesday. The stock has snapped a three-day losing streak post this move.Despite this surge, the stock is yet to recover its losses for 2024, still down 2% on a year-to-date basis. However, since its listing in March 2021, the stock has risen 250% from its IPO price of ₹1,490 per share.
