By IANS,
Chennai : City-based Numeric Power Systems Ltd will deploy the sale proceeds of the uninterrupted power systems (UPS) business in strengthening its renewable energy (wind and solar) and steel business, said a top company official.
The company Friday announced the sale of its Indian, Sri Lankan and Singapore UPS business to Legrand group of France for Rs.859 crore, including non-compete fees.
Speaking to reporters here R. Chellappan, managing director said: “The company would focus on its renewable energy business. We will increase the wind power capacity to 10 MW from the current 1.5 MW.”
He said Numeric would also train its energies on roof top solar power generation solutions and foray into industrial energy efficiency and storage business.
Chairman R. Veeramani said: “The company would continue to operate its other business – alloy steel foundry, iron foundry, solar power solutions.”
The Rs.484 crore revenue Numeric gets around Rs.373 crore from its UPS business and the balance is given by other business divisions.
“Last few years our non-UPS business grew and now it is around Rs.100 crore. We will focus on them,” Chellappan told IANS.
Numeric’s Indian promoters hold 55.37 percent of the company’s Rs.10.11 crore equity while the foreign promoters hold 8.02 percent and the public holding is 36.61 percent.
According to Chellappan, the company would declare a special dividend so that shareholders would also get a share of the sale price.
“We do not have any plans to buy out existing shareholders and go in for delisting. We will be changing the company’s name. The sale price includes brand value. The brand is owned by Numeric and not by the promoters,” Chellappan told IANS.
According to Yes Matinez, managing director, Legrand India, the group would accelerate the growth of all the three brands – Numeric, Legrand and Indo Asian Switchgear by sustained growth investments.
Ambit Corporate Finance acted as investment bankers for Legrand on this transaction. Amarchand & Mangaldas & Suresh A. Shroff & Co were the legal advisors for Legrand and Universal Legal for Numeric.
Ernst & Young and Lakshmi Kumaran & Sridharan provided assistance on respectively financial due diligence and tax due diligence related matters on this transaction.