Electrical equipment major Numeric Power Systems has decided to sell its UPS (uninterrupted power system) business to Legrand Group of France for a total consideration of Rs.806.44 crore.
Numeric Power has initialled a definitive agreement to this effect with the French Group.
It has also entered into a deal to sell Numeric Lanka Technologies, a fully-owned subsidiary of Numeric Power Systems, to Indo-Asian Electric Pvt. Ltd., an affiliate of Legrand France, for Rs.9.36 crore
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Numeric board also approved the sale of the UPS business undertaking of Numeric Power System Pte. Limited (a 100 per cent subsidiary in Singapore), to a Singapore affiliate of Legrand France S.A. for an aggregate consideration of $ 4.5 million.
Addressing presspersons here on Friday, R. Chellappan, Managing Director, Numeric Power Systems, was confident that Legrand would accelerate the growth of UPS business by increasing its product bandwidth, expanding applications and providing access to new geographical markets.
Mr. Chellappan said post-sale Numeric Power would continue to manage the UPS business for Legrand.
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Yves Martinez, Managing Director, Legrand India, said the company would continue to invest in Numeric, Legrand and Indo-Asian Switchgear brands, launch new products and expand international operations.
According to R. Veeramani, Chairman, Numeric Power Systems, the listed Indian company would continue to operate its other businesses comprising alloy steel foundry, iron foundry, complete solar solutions in the areas of roof-top and EPC solutions. ``We will continue to pursue exciting opportunities in India and abroad in these businesses,'' the added.
The board would also recommend a special dividend to the shareholders out of the proceeds of the sale of the UPS business, Mr. Veeramani said. Mr. Chellappan said the three brands were highly complementary. Numeric, he said was, a premier Indian company for UPS with a high quality product offering and extensive network of more than 1,200 service people to provide its customers with power continuity. Legrand and Indo Asian, on the other hand, held strong positions in both the switchgear products and premium wiring devices.
Shares flare up
The company has reported a turnover of Rs.136.94 crore in the third quarter ended December 31, 2011, against Rs.133.37 crore in the corresponding period in the previous year. The net profit was lower at Rs.7.20 crore against Rs. 10.89 crore. On Friday share prices of the company hit the circuit limit of 20 per cent to Rs.280.25.