Clearwater Capital Partners-backed , has sold its forging subsidiary to Nagpur Automotive Industries Pvt Ltd for Rs 230 crore ($44 million). The transaction is part of strategy to divest the non-core assets.
Neepaz V Forge, manufactures forged products for automobile players such as Tata Motors, Ashok Leyland, Renault and Mahindra & Mahindra besides railways, oil & gas, defence and agriculture sectors.
Its product profile includes front axle beams, crank shafts, cam shafts, connecting rods, stub axles, steering knuckles, axle arms, differential case, differential covers, differential housings, pistons, yokes, gears, track links etc.
According to VCCEdge, the financial research platform of VCCircle, Neepaz clocked revenues of Rs 116.29 crore with EBITDA of Rs 20.1 crore and net profit of Rs 4.8 crore for the year ended March 31, 2011. This means the deal valued the company 11.4x its one year old EBITDA and 48x its net profit.
Enam was the exclusive advisor to Adhunik Metaliks Ltd for the transaction.
Adhunik had acquired V Cube Forge India Ltd for an undisclosed amount in September 2007 and later renamed it as Neepaz V Forge.
Kolkata-based Adhunik is a $1 billion group with business interests in steel, power and mining. The group flagship Adhunik Metaliks is a public listed firm and counts amongst its investors Clearwater Capital Partners.
Last December, Deepak Cables India Ltd acquired Adhunik Power Transmission Ltd from Adhunik Metaliks. Adhunik Power Transmission (formerly Unistar Galvanisers & Fabricators Ltd) is a manufacturer of fabricated and galvanised items.