Karma Ind locked at 5% upper circuit on buyout by Crompton

Karma Industries was locked at five percent upper circuit on Friday on news that engineering firm Crompton Greaves has decided to buy compact fluorescent lamps business of the company.

Crompton announced that it has concluded an arrangement for acquisition of the compact fluorescent lamps (CFL) business of Karma Industries at Baddi, Himachal Pradesh. The approximate value of acquisition of the abovementioned business is Rs 14.5 crore, the company added.

"The acquisition will double the company’s capacity in the fast-growing CFL lighting segment and reinforce its presence in the rapidly growing Indian consumer market," the company said.

At 09:40 hours IST, the share of Karma Industries was quoting at Rs 4.73 on Bombay Stock Exchange. There were pending buy orders of 165,269 shares, with no sellers available.
 
In the previous trading session too, the share closed up 4.88% at Rs 4.51. Market capitalisation of the company currently stands at Rs 15.61 crore.
 
Meanwhile, Crompton Greaves fell 0.34 percent to Rs 115.70 in early trade.