Ascent Capital-backed Ramkrishna Forgings to buy Globe Forex and Travels

Kolkata-based manufacturing firm Ramkrishna Forgings Ltd (RKFL) has entered into a definitive agreement to acquire travel services provider Globe Forex and Travels Ltd  (GFTL), according to a BSE filing. However, the financial details of the deal have not been disclosed.

Kolkata-headquartered GFTL is providing travel and travel-related services since 1981 and covers a number of areas such as travel, forex, cargo, MICE and tours. It is a member of the International Air Transport Association (IATA) and uses the current Galileo system for reservation. GFTL has a turnover of Rs 159.85 crore as on March 31, 2012.

RKFL manufactures open and closed plain carbon and low alloy steel forgings for railways, automobile and general engineering purposes. The company, which went public eight years ago, had earlier received funding from Phi Advisors and Ascent India Fund.

The firm also caters to OEMs like Tata Motors and Ashok Leyland, and is a global supplier to companies like Meritor, among others.

Earlier this year, International Finance Corporation (IFC) said it could commit up to $20 million to part-fund the firm’s greenfield expansion programme in Jamshedpur that includes a new front axle beam manufacturing line. The mode of investment was not disclosed although it is expected to be in the form of debt.

News of diversification into an unrelated area saw its share price crash over 5 per cent on Monday and was quoting at Rs 112.85 a share on the BSE in a flat Mumbai market in the late trading hours.

(Edited by Sanghamitra Mandal)

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