Buy / Sell V-Guard Ind share
Recommended ArticlesView All
Worldview: Biden at the State of Union | 'Let’s finish the job'
Feb 8, 2023 IST6 Min(s) Read
Delhi is one of the most populated cities prone to earthquakes in India — can it handle what Turkey couldn't
Feb 7, 2023 IST6 Min(s) Read
A look at Salman Rushdie’s Victory City and controversies surrounding the author
Feb 7, 2023 IST4 Min(s) Read
Ways to save tax other than Section 80C with your home loan
Feb 7, 2023 IST3 Min(s) Read
Consumer appliances manufacturer V-Guard Industries Ltd., has signed a share purchase agreement to acquire 100 percent stake in Sunflame Enterprises Pvt. Ltd., for Rs 660 crore in cash.
Sunflame is engaged in the business of manufacturing and marketing of various kitchen and small domestic appliances.
The acquisition is expected to be completed by mid-January 2023, subject to certain closing conditions and adjustments.
V-Guard terms the acquisition to be in-line with their strategy to become a significant player in the domestic kitchen appliances segment. The company intends to capitalise on the Sunflame brand's pan-India presence, recall capabilities, wide portfolio, product development capabilities and the recently established state-of-the-art integrated manufacturing facility to scale up its kitchen appliances business while also unlocking synergy benefits.
The company intends to fund this transaction through a mixture of internal accruals and debt. Out of the Rs 660 crore, Rs 25 crore will be paid two years after the closure of the transaction.
V-Guard's management believes that the acquisition offers multiple levers for unlocking significant synergies in areas like geography, product portfolio and channels. The deal is said to be value accretive for V-Guard's shareholders and will catapult the company into the league of frontline kitchen appliances players in the country.
Over the last three financial years, the Sunflame brand has had revenue worth Rs 263 crore, Rs 264 crore and Rs 350 crore respectively.
Shares of V-Guard Industries gained as much as 6.6 percent post the announcement and are currently trading 4 percent higher at Rs 260.