31.08.2006

ACE looking at 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, its director Sohrab Agarwal, said the company would invest 70-80 million Rupees for the overseas acquisition.

ACE said it is currently evaluating companies in Italy and China and the acquisition is likely to be undertaken by the end of this December. According to Agarwal, an Italian purchase is more likely.

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 a 130 million Rupees expansion with the addition of an R&D facility.

These investments will be met by the IPO offering which will open on September 1, and close on September 7. The promoters of the company will hold 65 percent of the net public offering while employees of the company will be allotted one per cent of the total public offering.