Mumbai, 11 September Auto parts maker Ramkrishna Forgings is close to acquiring unlisted Trinity Engineers in a deal worth around Rs1.5-2.0 billion, three sources close to the deal said today.
The acquisition is almost complete, except for a few finer points, a source said. “They are working towards finalising it, but I cannot put a time stamp. It will be very soon.”
A Ramkrishna Forgings spokesman refused to comment, while Trinity’s Joint Managing Director Asheet Pasricha said he would not comment on rumours.
Kolkata-based Ramkrishna Forgings has obtained board approval to increase its borrowing to Rs4.5 billion to fund acquisitions, among others. A source said Yes Bank was advising Ramkrishna Forgings on raising the money.
Pune-headquartered Trinity makes auto parts such as axles, connecting rods, gears and non-auto components such as crane masts, fish plates and pneumatic cylinders.
Trinity’s customers include Tata Motors, Ashok Leyland Ltd, Bajaj Auto and Eicher Motors, its website showed.
Ramkrishna Forgings reported a net profit of Rs139 million on net sales of Rs1.51 billion in the year to March 2007. Trinity’s revenue was not immediately available.
Indian auto parts firms have resorted to acquisitions in India and abroad to grow, amid rising orders from global auto makers and large component suppliers looking for a low-cost base.
Ramkrishna Forgings shares were trading 1.6% down at Rs224 in the Mumbai market. REUTERS