Bharat Forge Ltd. will acquire AAM India Manufacturing Corp Pvt. Ltd. to expand its operations. The company has entered into a definitive agreement with AAM India to acquire 100% stake, Bharat Forge said in an exchange filing on Wednesday.
The transaction value of the deal is Rs 544.53 crore.
AAM India is a subsidiary of American Axle & Manufacturing Holdings, Inc.
AAM India manufactures axles for light, medium, and heavy commercial vehicles like trucks and buses in India. The scope of acquisition involves AAMIMCPL's commercial vehicles' axle business with its manufacturing assets in Pune, Chennai. Bharat Forge will also acquire its India Pune Engineering & Development Centre, the exchange filing said.
The acquisition is subject to terms agreed upon in the share purchase agreement and requisite regulatory approvals from Competition Commission of India, the exchange filing said.
Bharat Forge Ltd. declined 2.19% to Rs. 1,442.75 apiece.
Bharat Forge Ltd. declined 2.19% to Rs. 1,442.75 apiece, the lowest level since Oct 8. The stock has been declining for seven straight sessions. It was trading 1.01% lower at Rs 1,460.75 apiece as of 2:33 p.m., as compared to a 0.83% decline in the NSE Nifty 50 index.
The stock gained 30.24% in 12 months, and 17.99% year-to-date. Total traded volume on NSE so far in the day stood at 0.58 times its 30-day average. The relative strength index was at 36.60.
Out of 28 analysts tracking the company, 14 maintain a 'buy' rating, three recommend a 'hold,' and 11 suggest 'sell', according to Bloomberg data. The average 12-month consensus price target implies an upside of 8.4%
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