IFB board gives thumbs up to laundry equipment acquisition

The Board of Director of IFB Industries has approved the proposed acquisition of Ramsons Garment Finishing Equipment Pvt. Ltd and Ramsons Udhyog Pvt. Ltd on a slump sale basis. The said acquisition is worth Rs. 35 crores.

The acquisition is in-line with IFB's business strategy and will help in consolidation and growth of the Laundry Equipment Business. There could be some approvals pending from the Statutory Authorities The transaction will be completed in Q2FY19.

IFB Industries’ Q1FY19 numbers have beaten street expectations. Sales have increased by 22.2 per cent yoy to Rs. 614.6 crore from Rs. 503.1 crore in Q1FY18. Net profit during the quarter has increased by 104.6 per cent yoy to Rs. 14.2 crore versus Rs. 7 crore in Q1FY18.

On Friday, shares of IFB hit intraday high of Rs. 1,198 per share and intraday low of Rs. 1,134 per share on the BSE. The 520week high was Rs. 1,542 and 52-week low was Rs. 630 per share on the BSE.

Despite the news, at 02:34 hours, the share was quoting Rs. 1,139 per share, down by 2.09 per cent. The BSE Senses was trading at 37,315 level, up by 0.89 per cent and Nifty50 was quoting 11,270 level, up by 0.93 per cent on Friday.