VR Woodart acquires 2 steel trading firms; raises Rs 40.6 cr via preferential issue

Mumbai, Nov 14 (PTI) Product engineering and design company VR Woodart on Friday announced the acquisition of two steel trading companies as part of its expansion plans and a fundraise of Rs 40.63 crore through a preferential issue.

In a statement, the company said that proceeds from the capital raise of Rs 40.63 crore will be allocated towards working capital requirements, expansion initiatives, and funding the acquisitions.

VR Woodart has also acquired 100 per cent stakes in Nidimo Mont and Parent Mont International, both well-established entities in the steel trading sector, the statement said.

The two firms are involved in the supply of stainless steel tubes, bars, plates, coils, and corrugated steel boards, catering to a broad industrial clientele across India and select global markets.

Collectively, Nidimo Mont and Parent Mont International have reported a combined turnover of around Rs 2,496 crore, it said.

The acquisition is expected to diversify VR Woodart's revenue mix, unlock operational synergies, and enhance its consolidated balance sheet, it added.

The timing of the acquisitions aligns with India's rapidly expanding steel and construction materials market, which has witnessed consistent double-digit growth in recent years, it said further. PTI HG SHW