The company said it recently acquired a new manufacturing facility in Jamnagar, Gujarat, which is similar to the existing facility
Shares of Sprayking Agro Equipment Ltd touched the 5 percent cap in early trade on November 20 after the company announced that its board had approved raising capital from its subsidiary Narmadesh Brass Industries Ltd through an initial public offering.
At 9.20 am, Sprayking Agro was trading at Rs 243 on the BSE, up 5 percent from its previous close.
“The company has agreed to raise funds for its subsidiary Narmadesh Brass Industries Limited through an initial public offering, subject to relevant regulatory approvals,” the company said in a notification to stock exchanges.
It aims for significant growth and sees fundraising for its subsidiary as a strategic step to expand business operations. Sprayking holds a majority stake in Narmadesh Brass Industries Limited and the IPO will enhance its consolidated financials, the company added.
“Our decision to initiate the IPO of our subsidiary is a testament to our vision of accelerated progress and increased market presence. With Sprayking holding a majority stake in Narmadesh Brass Industries Limited, this move will undoubtedly strengthen our consolidated financials and strengthen our position in the industry…. We look forward to your continued support as we move into this new phase of growth and expansion come in,” said Hitesh Dudhagara, Managing Director of Sprayking.
The company said it recently acquired a manufacturing facility in Jamnagar, Gujarat, similar to the existing facility. This unit will manufacture brass and forging components in a 3,000 square meter modern factory. This addition will strengthen the company’s market position, it said. However, the company did not disclose the value at which it acquired the asset.
The company also said that Sprayking Agro Equipment Limited recently acquired a 51 per cent stake in Narmada Brass Industries, founded by Hitesh Dudhagra in 2019, as part of an expansion drive. Narmada Brass specializes in manufacturing copper-brass wares with a production capacity of 2,000 tons per year.
The company further said that this acquisition drives rapid business growth and enables it to service new orders both domestically and internationally. The company is using the funds raised for its own expansion and that of its investors, it said.
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