Hindalco Industries Ltd., through its wholly owned subsidiary Renuka Investments & Finance Ltd., has entered into an agreement with Polycab India Ltd. to acquire the latter’s 100% equity stake in Ryker Base Pvt. Ltd. (Ryker) for an enterprise value of ₹ 323 crore.
Post debt and working capital adjustments, the sale consideration is likely to be about ₹167.5 crore Consolidated debt in Polycab’s financials is likely to reduce by about ₹1,57.5 crore which pertains to external commercial borrowing and working capital, Polycab said.
The transaction is expected to be completed by December end, it added.
“The acquisition will strengthen Hindalco’s copper rod manufacturing capacity by providing a time-to-market advantage, allowing the company to cater to the growing demand from electrical and electronics sectors,” Hindalco said in a filing.
Satish Pai, Managing Director, said, “Our copper is a vital input into India’s accelerating journey on Electrification, Urbanisation, Renewables and E-Mobility. Keeping the needs of the nation and industry in mind, we have taken the step to expand its capacity.”
Mr. Pai added, “The acquisition takes forward the company’s downstream strategy. The Ryker deal will further enrich our portfolio of downstream products.”