Ramkrishna Forgings Sells its Hospitality Management subsidiary Globe to Yatra online for Rs.128 crore

Kolkata: Ramkrishna Forgings Limited, one of the leading suppliers of rolled, forged, and machined products, has announced that it has entered into Share Purchase Agreement to sell 100% stake in its Wholly-owned Subsidiary, Globe All India Services Limited to Yatra Online Limited, for a cash consideration of Rs. 128 Crores (net of debt). Globe All India Services has evolved into one of India’s leading Hospitality Management Companies, with a diversified portfolio spanning Corporate Travel, MICE (Meetings, Incentives, Conferences and Exhibitions), Leisure and Car Rental. Commenting on the development, Mr. Naresh Jalan, Managing Director of Ramkrishna Forgings Ltd. said, “As part of our strategic product rationalization initiative, we have decided to focus on our core segments particularly in forged, machined and fabricated products for diverse sectors such as Automotive, Railways, Oil & Gas and Power, among others, where the Company see a great potential for growth and expansion. This move not only aligns with our long-term objectives but also enables us to strengthen our balance sheet. This division was built by addressing market needs of the time and its success reflects the dedication and hard work of our outstanding team. As the business transitions to new ownership, we express our sincere gratitude to everyone who played a role in its growth.” We will continue to be concentrating on long-term growth in our primary sectors and continue delivering value to all our stakeholders. The cash proceeds from this transaction will further deleverage and strengthen our Balance Sheet. The transaction is expected to close within this quarter, subject to the satisfactory completion of all closing conditions.