The Hindu Business Line : ACE plans overseas acquisition

Action Construction Equipment (ACE), a manufacturer of mobile cranes, mobile tower cranes and construction equipment is looking at an overseas acquisition.

At the recent IPO announcement, Mr Sohrab Agarwal, Director, said the company would invest Rs 7 crore-8 crore for the overseas acquisition.

ACE is currently evaluating the prospects between the companies in Italy and China. The acquisition is likely to be undertaken by the end of this December. Mr Agarwal added that Italy is the favourite of the two as it was one of the cost competitive manufacturers for diverse crane model range.

Faridabad plant

Besides foreign investment, the company is about to build a new plant in Faridabad. The new facility will manufacture backhoe loaders with an initial monthly capacity of 50 units that will rise to 100 units by the first quarter of 2007. Its existing facility at Faridabad will also undergo expansion with a R&D facility set up at an investment of Rs 13 crore.

Investments

These investments will be met by the recent IPO offering. The company has proposed to enter the capital market with a public issue of 46 lakh equity shares of Rs 10 each in the price band of Rs 110 to Rs 130 per equity share. The offering will open on September 1, and close on September 7. The promoters of the company will hold 65 per cent of the net public offering while employees of the company will be allotted one-lakh shares comprising one per cent of the total public offering.

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