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Craftsman Automation Ltd., a leading engineering firm engaged in the manufacturing of precision components, on Thursday announced that it is set to acquire a 76 percent stake in auto parts maker Dr Axion India Pvt. Ltd. for Rs 375 crore.

The company said it signed an agreement with Dr Axion India to acquire around 8.6 crore shares of the company. Upon completion of the transaction, Dr Axion India will become a subsidiary of the company. The acquisition is expected to be completed before March 31, 2023.

After the announcement, shares of Craftsman Auto jumped by over 8 percent to hit a high of Rs 3,512.55 apiece in opening trade on Friday. The stock has jumped nearly 54 percent in the last year compared to a 6 percent rise in the benchmark Nifty 50 index.

Incorporated in December 2006, Dr Axion India manufactures aluminium cylinder heads, a critical auto component used in passenger vehicles as outer shells of internal combustion engines. The company has a single manufacturing facility in Chennai.

Dr Axion India's customers are leading automobile original equipment manufacturers selling passenger vehicles in India. The company recorded a turnover of Rs 716 crore during the financial year 2022.

Shares of Craftsman Automation Ltd. are trading 8.12 percent higher at Rs 3,523.55.

Also Read: Craftsman Automation shares rise after marquee funds buy stake

(Edited by : Rukmani Krishna)

First Published:Dec 30, 2022 10:41 AM IST