Pitti Engineering Ltd. said it had signed an agreement with Dakshin Foundry Private Ltd. (DFPL) and its shareholders to acquire 100% of the equity share capital of DFPL at an equity value of ₹ 153.12 crore.

“The cost of acquisition comprises the business value and working capital of DFPL on the acquisition date. DFPL has a positive cash and bank balance of ₹ 42.71 crore and nil debt as on June 30, 2024,” the company said in a statement.

The company proposes to complete the acquisition within 15 days of signing the definitive agreement. 

Akshay S Pitti, Managing Director & Chief Executive Officer, Pitti Engineering said, “The acquisition of DFPL is synergistic with the business of the listed entity and its subsidiary companies.” 

“DFPL would add to our production capacity and operational strength. The acquisition also aligns with our inorganic growth strategy,” he added.

DFPL is engaged in the manufacture of casting in ductile iron, grey iron, low carbon, alloy steel grades along with value added services like pattern making. It has two manufacturing facilities located in Hosakote, Bengaluru, and has an installed capacity of 4,200 tonnes per annum.