Craftsman Automation surges 12% on MoU with Sunbeam, Kedaara Capital

At 3:02 pm, Craftsman Automation shares traded at ₹5,395, a gain of 11.68%, or ₹564.25.

In an exchange filing on June 24, Craftsman Automation announced that it has entered into a Memorandum of Understanding (MoU) with Sunbeam Lightweighting Solutions Private Limited and Kedaara Capital Fund II LLP. The agreement aims to potentially acquire all or part of Sunbeam’s business, excluding specific assets located in Gurugram, in one or more tranches.

However, the completion of this proposed transaction is subject to several conditions, including thorough due diligence, final approval by the board of directors, execution of definitive agreements, and completion of other customary regulatory requirements.

Craftsman Automation said it would disclose further details regarding this transaction following the execution of necessary definitive agreements. The company did not disclose any further details regarding the timeline or financial considerations for the acquisition.

On June 18, Craftsman Automation announced that it had initiated a Qualified Institutional Placement (QIP), aiming to raise ₹1,200 crore from the market. This initiative involves issuing a specified number of equity shares, each valued at ₹5, to qualified institutional buyers. The company has determined and approved an issue price of ₹4,400 per equity share, inclusive of a premium of ₹4,395 per share. This price includes a discount of ₹26.11 per share (0.60% of the floor price).

Craftsman Automation manufactures automobile parts, including gears, heavy-duty components, sheet metal equipment, specialised machinery, engineered components, and complete assemblies.

Shares of Craftsman Automation recorded a 52-week high of ₹5,513.65 on December 22, 2023, while its lowest during the same period was seen on March 20, 2024, at ₹3,782.05.