This consumer electronics company gave information about its acquisition, the impact on the stock will be visible on Today.

Consumer electronics company PG Electroplast has informed that its wholly owned subsidiary company PG Technoplast Private Limited i.e. PGTL has approved to buy 100 percent stake in Next Generation Manufacturers Private Limited i.e. NGM. According to the company, with the completion of the purchase, NGM will become a subsidiary of PGTL. The company has sent the information about share purchase to the stock market on Saturday. On Friday, the stock closed at Rs 2000 level with a gain of about half a percent. The effect of this news can be seen on the stock in today’s business.

What information has the company given?

According to the information given by the company, NGM works in consumer durables and electronic segments. Through the deal, the company will acquire the infrastructure and manufacturing business of NGM and use them for growth and expansion. This deal will be done in cash and the entire deal will be worth Rs 15 crore. NGM was formed in the year 2019. However, the company started commercial operations only a year ago. The turnover for the financial year 2022-23 has been Rs 5 crore. The company said that after the completion of the purchase, they will invest additional money in it.

How has the stock performed?

The stock has proved to be a multibagger for its investors. The stock has increased more than 8 times in 3 years. The stock has increased by more than 76 percent in one year. The company is going to present its quarterly results on 13th February itself. In the September quarter, the company’s sales had reached Rs 460 crore with an increase of more than 40 percent on year-on-year basis. The profit during this period has increased by more than 72 percent to Rs 12.37 crore. At the same time, there has been an increase of 47 percent in EBITDA compared to last year.