MTAR Technologies advanced 2.22% to Rs 1486.60 after the company said it entered into an agreement for acquisition of Gee Pee Aerospace & Defence for Rs 8.82 crore.
The board of MTAR Technologies approved the acquisition last month.
Gee Pee Aerospace & Defence, an MSME company, manufactures high precision components for defence and aerospace sectors. As on 31 March 2021 Gee Pee recorded turnover of Rs 1,67,59,459 and net worth stood at Rs 1,33,57,633.
"This acquisition is expected to provide a wide array of benefits under MSME category including the increased potential of entering into offset partnership with global OEMs as foreign partners get an offset credit of up to 1.5 multiple on Indian content. Furtlrer, the public procurement policy mandates procurement of up to 20% of requirements of Govt departments through MSMEs, which is expected to augment our customer base. In addition, this shall enhance our capacity that enables us to address more orders, thereby expanding our product portfolio," MTAR said in a statement on 10 May 2022.
MTAR Technologies is a niche manufacturing service provider in precision engineering and critical assembly of key components and products for various customer segments such as Civil Nuclear Energy, Space, Defence and Aerospace, Clean Energy and others.
On a consolidated basis, MTAR Tech's net profit rose 9.9% to Rs 19.80 crore on a 42.5% increase in net sales to Rs 98.58 crore in Q4 FY22 over Q4 FY21.
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