With this acquisition, GMM became the ultimate holding company of the Pfaudler group, with the entire business of Pfaudler being consolidated into GMM. The combined revenue of the entity is estimated to be around Rs 2000 crore (USD 267 million).

This acquisition is expected to be earnings accretive immediately to the shareholders of GMM Pfaudler.

Commenting on the successful completion of the transaction, Tarak Patel, MD of GMM said, with the acquisition now complete, it will allow us to continue on our exciting journey of making GMM Pfaudler the global leader in corrosion-resistant technologies, systems and services.

Shares of GMM Pfaudler were trading 0.63% higher at Rs 3,763.10 on BSE. The announcement was made before market hours today, 17 February 2021.

GMM is a leading supplier of process equipment to the pharmaceutical and chemical industries. It is a market leader and has more than five decades' experience in manufacturing Glass Lined Equipment.

Powered by Capital Market - Live News

GMM Pfaudler announced that it hassuccessfully completed the transaction to acquire a majority stake of its parent, the Pfaudler Group(Pfaudler) from the private equity firm Deutsche Beteiligungs AG Fund VI (“DBAG”), after receiving allnecessary regulatory approvals.

Pursuant to the acquisition, GMM has become the ultimate holding company of the Pfaudler group, with theentire business of Pfaudler being consolidated into GMM. The combined revenue of the entity is estimatedto be around Rs 2000 crore (USD 267 million).

GMM is now the world leader in corrosion-resistance technologies, systems and services with 12manufacturing facilities across 8 countries and 4 continents and employing around 1,500 people.

Powered by Capital Market - Live News

GMM Pfaudler announced that CRISIL has rated the debt instruments of the company as under:

Total bank loan facilities - Rs 100 crore

Long term rating - CRISIL AA-/Watch Developing (Continues on'Rating Watch with Developing Implications')

Short term rating - CRISIL A1+/ Watch Developing (Continues on'Rating Watch with Developing Implications')

Powered by Capital Market - Live News

Consolidated profit before tax (PBT) soared 18.2% to Rs 31.96 crore in Q3 December 2020 as against Rs 27.05 crore in Q3 December 2019. Current tax expense for the quarter surged 21.1% to Rs 8.71 crore as against Rs 7.19 crore in Q3 December 2019. The Q3 result was declared after market hours yesterday, 20 January 2021.

Consolidated EBITDA grew 38% to Rs 41.9 crore in Q3 December 2020 from Rs 30.4 crore in Q3 December 2019. EBITDA margin improved to 21% in Q3 FY21 from 20% in Q3 FY20.

Commenting on the company's performance for Q3 FY21, Tarak Patel, the managing director (MD) of GMM Pfaudler, has said that: We are pleased to announce yet another quarter of strong performance. Our end user segments continue to do well led by a strong recovery in the pharmaceutical sector, resulting in a healthy order backlog across all our product lines.

Our newly acquired manufacturing facility in Hyderabad is up and running along with our new gas furnaces in Gujarat. In reference to the acquisition of the international business of the Pfaudler Group, we have received all foreign investment and antitrust approvals and we expect to close the transaction soon. The overall business environment looks very promising and we expect all our business lines to do well..

Jugal Sahu has resigned as the chief financial officer (CFO) of the company with effect from 20 January 2021 due to personal reasons and will be relieved with effect from 31 March 2021. Manish Poddar has been appointment and re-designation as the CFO and Key Managerial Personnel (KMP) with effect from 20 January 2021 on account of resignation of Jugal Sahu.

GMM Pfaudler is a leading supplier of process equipment to the pharmaceutical and chemical industries. The company holds a majority stake of 54% in the parent Pfaudler Group and is the market leader with more than five decades' experience in manufacturing glass lined equipment.

The scrip fell 2.40% to Rs 3772.90. It traded in the range of 3700 and 3885 so far during the day.

Powered by Capital Market - Live News