Craftsman Automation shares rally 11% after company signs MoU for potential acquisition

Shares of Craftsman Automation zoomed 11% on BSE to day’s high of Rs 5,363.85 after the company entered into a Memorandum of Understanding (MoU) with Sunbeam Lightweighting Solutions and Kedaara Capital Fund II.

The MoU pertains to the acquisition of whole or part of the business of Sunbeam.

The acquisition proposal is still subject to the completion of due diligence, final approval by the board of directors, execution of definitive documents, and fulfillment of other customary legal conditions.

“Completion of the Proposed Transaction remains subject to inter alia, completion of due diligence, final approval of the Board of Directors of the Company, execution of definitive documents, and completion of other customary conditions as may be required under law,” said the company in a filing to the exchanges.

The transaction will be completed in one or more tranches. However, no other details were shared by the company on the proposal of the acquisition yet.Also read: Happiest Minds shares tumble over 9% on promoter stake sale buzzCraftsman Automation is a leading engineering organization engaged in the manufacturing of precision components. Established in the year 1986, the company had started as a small scale industry in the southern Indian city of Coimbatore and is now a leader in precision manufacturing in diverse fields.The shares of Craftsman Automation have jumped 35% in the last one year while gaining 20.5% in the last one month alone, as per BSE analytics. The stock has more than doubled in the last 2 years.

The technical placement of the stock also looks good as it is currently standing above all the significant exponential moving averages while oscillating near the 70-level mark on the RSI, as per Trendlyne data.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

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