Alicon Castalloy, one of the leading manufacturers of aluminum alloy castings, has acquired the castings business of Atlas Castalloy. The acquisition includes transfer of plant and machinery against issue of equity shares to the existing shareholders of Atlas Castalloy.

The acquisition has been completed through an all-share deal wherein existing shareholders of Atlas have been issued 1.26 million equity shares of Alicon.

Atlas Castalloy, manufactures aluminium castings at its production facility at Chinchwad, Pune with a capacity of 6000 million tonnes per annum, generated revenue of Rs 1.37 billion during FY 2014-15.

Vimal Gupta, CFO, Alicon Group, said "The acquisition will enable the company to achieve economies of scale with additional production capacities, optimal utilization of resources and reduction in cost. This will give access to the company to expand its large customer base with addition of clients like Greaves Cotton, Royal Enfield, Piaggio and Defencewhich are existing clients of Atlas Castalloy."

Shares of the company declined Rs 13.8, or 3.81%, to settle at Rs 348.00. The total volume of shares traded was 2,208 at the BSE (Tuesday).