On 2 September 2024, Ramkrishna Forgings Limited, a leading player in the forging industry, held a significant Board Meeting where crucial decisions were made regarding its strategic direction. The company has decided to divest its 100% equity stake in its wholly-owned subsidiary, Globe All India Services Limited (GAISL), to Yatra Online Limited for an aggregate consideration of INR 128 crore, net of debt.

Globe All India Services Limited, which specializes in hospitality management including corporate travel, MICE (Meetings, Incentives, Conferences, and Exhibitions), leisure, and car rentals, has been a significant part of Ramkrishna Forgings' portfolio. However, the company has decided to streamline its operations and focus on its core competencies. Post divestment, GAISL will cease to be a subsidiary of Ramkrishna Forgings.

This strategic move is aimed at aligning with the company's long-term objectives to concentrate on its primary segments, especially in forged, machined, and fabricated products for diverse sectors such as automotive, railways, oil & gas, and power. The decision is expected to bolster Ramkrishna Forgings' balance sheet and strengthen its financial position.

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In addition to the divestment, the Board also approved a capital expenditure for setting up a new aluminium forging facility. This investment of INR 5,750 lakhs is geared towards adding 3,000 MT per annum capacity. The facility is expected to be commissioned by Q2 FY26 and will cater to the growing demand in the electric vehicle (EV) market, as well as enhance the company's market presence in both domestic and export markets.

This dual decision marks a pivotal moment for Ramkrishna Forgings, reflecting its strategic efforts to focus on core business areas while expanding into new growth segments. The cash proceeds from the divestment will contribute to strengthening the company's balance sheet, further supporting its long-term growth strategy.

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