WPIL has received an approval for the proposed acquisition of an Alloy and Stainless Steel Castings Foundry in Nagpur from its existing owner Hindusthan Udyog (Promoter Company) on a 'going concern basis' for a lumpsum consideration of Rs 336.4 million to be paid in cash.

The acquisition would enable the company in its backward integration for manufacture of pumps. The board of directors at their meeting held on July 14, 2017 has approved for the same.

The proposed acquisition of the above Unit would enable the company in its backward integration for manufacture of pumps. Further, the company is in the process of setting up a modern large pump manufacturing unit on the adjacent land of this Unit which will synergize the operations and improve its efficiency. This transaction would provide access to ready land and infrastructure requirements for this facility. Moreover, with the acquisition, the cost of procurement of castings for our company would reduce leading to an increase in its operating margins besides reduction in regulatory compliances.

Shares of the company declined Rs 11.2, or 1.98%, to settle at Rs 554.20. The total volume of shares traded was 34,481 at the BSE (Friday).