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GMM Pfaudler shares gain after acquisition of assets of HDO Technologies

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The share price of GMM Pfaudler jumped 8 percent in intra-day deals on Wednesday after the firm acquired assets of HDO Technologies for Rs 58.46 crore in liquidation.

GMM Pfaudler shares gain after acquisition of assets of HDO Technologies
The share price of GMM Pfaudler jumped 8 percent in intra-day deals on Wednesday after the firm acquired assets of HDO Technologies for Rs 58.46 crore in liquidation.
The stock rose as much as 7.8 percent to the day's high of Rs 4,550 per share on the BSE. However, it pared some gains to trade around 3.5 percent higher at Rs 4,361 later.
In a press release, the company said, "We have participated in the e-auction process for the sale of assets (factory land, building, plant and machinery, office equipment, computers, furniture and fixtures, vehicles and capital work in progress) owned by HDO Technologies (in liquidation) in accordance with the process memorandum dated February 23, 2021 issued by HDO Technologies’ Liquidator under the provisions of Insolvency and Bankruptcy Code (IBC), 2016, vide order of Hon’ble National Company Law Tribunal, Mumbai bench, dated June 28, 2018, and was declared as the successful bidder by the Liquidator."
This facility, spread over 11.9 acres with seven manufacturing bays, is located in Vatva, Ahmedabad.
"This acquisition allows us to grow our heavy engineering business and at the same time allows us to expand our glass-lined business at our original facility,” said Tarak Patel, Managing Director of GMM Pfaudler to CNBC-TV18.
He added that the factory can generate close to about Rs 500 crore of revenue over the next three-five years compared to what "we are currently doing in heavy engineering at about Rs 100 crore".
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