Mumbai-based polymer products manufacturer Time Technoplast Ltd has sold its Poland-based subsidiary Novo Tech SP Z O.O. to an unnamed Polish private equity fund at an enterprise value of €11 million ($12 million), according to a stock market disclosure.
The divestment also includes Novo Tech's wholly-owned subsidiary GrassTech, Romania, the company said.
The equity value of the deal stands at €7 million ($7.8 million). Time Technloplast said it had invested around €2 million in the firm over time.
Novo Tech manufactures anti spray flips and entrance mattings. It has two divisions - lifestyle products and auto component offerings. GrassTech makes products like clear pass spray suppression flaps for commercial vehicles, astroturf entrance matting, astroturf grand prix, astroturf snow sports surfaces and astroturf poultry pads for the poultry industry.
Time Technoplast will be using the money for expanding its business in Asia and augmenting working capital.
Novo Tech is not a material subsidiary of the company so it will not have any significant impact on top-line/bottom-line in FY16.
Shares of Time Technoplast were trading at Rs 52.55 a piece on BSE in a weak Mumbai market on Monday at 1.20 PM.