Ramkrishna Forgings Acquires Mexican Firm to Expand Global Footprint

On August 13, 2024, Ramkrishna Forgings Limited announced that it had successfully acquired 100% equity shares of Resortes Libertad S.A. de C.V., a Mexican company. As of August 13, 2024, Resortes Libertad S.A. de C.V. is now a wholly-owned subsidiary of the Company.

The target entity, Resortes Libertad, S.A. de C.V., has a paid-up share capital of MXN 50,000 and reported a turnover of MXN 2,015,935 as of December 31, 2023.

The acquisition does not fall within related party transactions, and neither the promoter nor the promoter group has any interest in the acquired entity. Resortes Libertad, S.A. de C.V. operates in the manufacturing industry, specialising in wire, wire products, and springs.

Objective of Acquisition

The acquisition aims to establish machining facilities in Mexico, North America. Under a 10-year, USD 3.5 million per annum conversion agreement, a North American customer will supply the required machines and forgings for the facility. Additionally, the acquired company holds an IMMEX Program, which offers benefits for manufacturing operations in Mexico.

The transaction involved a cash consideration, with the total cost amounting to USD 433,881.72, subject to necessary currency adjustments. The Company has acquired 49,999 equity shares, while Multitech Auto Private Limited, a wholly-owned subsidiary of the Company, has acquired 1 equity share.

About Resortes Libertad, S.A. de C.V.

Resortes Libertad, S.A. de C.V., incorporated on September 24, 2009, in Mexico under Mexican law, was previously owned by Liberty Spring of Mexico, Inc. and Ressorts Liberte, Inc., both Canadian companies. The company specialises in manufacturing wire, wire products, and springs.

About Ramkrishna Forgings Ltd

Ramkrishna Forgings, the second-largest forging company in India, specialises in manufacturing and selling forged components for various sectors. The company offers an extensive product portfolio, with over 2,000 SKUs catering to both automotive and non-automotive needs. In the automotive sector, it supplies parts for original equipment manufacturers (OEMs) and Tier 1 suppliers, covering commercial and passenger vehicles. For non-automotive applications, Ramkrishna Forgings serves industries such as energy (including oil and gas and power), railways, farm equipment, and off-road applications, including earthmoving, mining, and construction.

On August 13, 2024, Ramkrishna Forgings Ltd’s share price opened at ₹927.75, touching the day’s high at ₹949.80, as of 01:43 PM on the NSE.

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