JTL Infra has decided to purchase Manufacturing Assets of Jagan Industries, a promoter group entity, on WDV (for moveable fixed assets) and/or FMV (for immovable fixed assets), in order to increase the manufacturing capacities, capabilities of the company and to achieve the greater economies of scale, strengthen company’s bargain power and to further fortify in its position in existing markets.
This ready to use manufacturing assets shall, post integration of its operation with company’s existing businesses, generate annual revenue of around Rs 200 crore and this will result in balance sheet going forward. Being a related party transaction and as a good corporate governance practice, the sale consideration is calculated on the basis of arm length price payable in cash. The transaction is expected to be completed within Q3 of FY21.
JTL Infra is an India-based company engaged in manufacture and sale of ERW Black and Galvanized steel pipes and Tubes, hollow sections and structural steel that are used in engineering and construction projects.
