The company and DRAIPL both operate in the auto components space and have strengths in complementary areas. This acquisition will help both entities leverage their strengths and build better synergies, said the company.

The company will acquire 8,57,65,631 equity shares, representing 76% of the total equity share capital on a fully diluted basis for a cost of acquisition of Rs 375 crore. The acquisition is expected to be completed before 31 March 2023.

DRAIPL manufactures aluminium cylinder heads, a critical auto component used in PVs as outer shell of internal combustion engines. It has a single manufacturing facility in Chennai, involving low pressure and gravity die casting processes. DRAIPL reported a turnover of Rs 715.94 crore for the financial year ended 31 March 2022.

Craftsman Automation is a diversified engineering company with vertically integrated manufacturing capabilities, engaged in three business segments, namely automotive-powertrain and others, automotive–aluminum products, and industrial and engineering.

The auto ancillary company's consolidated net profit jumped 25.06% to Rs 62.48 crore on 35.94% surge in net sales to Rs 776.24 crore in Q2 FY23 over Q2 FY22.