Orient Refractories in its recent board meeting held on 30th April 2019, approved a small acquisition of a company called, Intermetal Engineers lndia Private Limited (IIEPL).

ORL has agreed to acquire entire paid-up equity share capital of IIEPL i.e. 1,597 equity shares with face value of Rs 100 each at a price of Rs 63,200 per share. The total consideration works out to be around Rs 10 Cr and is to be paid in cash. ORL's management expects the acquisition to be completed within May 2019 post which IIEPL will become 100% owned subsidiary of ORL.

IIEPL was incorporated on 20th May, 1988 for marketing and manufacturing of steel plant equipment viz., slide gate system for flow control of liquid steel, oxygen lancing and CCM assemblies such as mould jacket assembly, dummy bar assembly, specially used during the flow of liquid steel for continuous casting, ingot casting which are exported to various countries. The company caters to about 300-400 regular steel plant customers in India.

In FY18, IIEPL had done a small turnover of Rs 5.46 Cr however the total asset base is of Rs 8.48 Cr

We believe this asset should be able to sweat out better while offering synergies in operations in the hands of a large and focused player like ORL.

Link to exchange notification: https://www.bseindia.com/xml-data/corpfiling/AttachLive/c748323c-3434-4f74-9bf4-89991ea8253e.pdf