Numeric Power Systems sells UPS business for Rs 837 cr

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Numeric Power Systems sells UPS business for Rs 837 cr

Numeric Power Systems said on Friday its board has approved sale of its UPS (uninterruptible power supply systems) business to Indo Asian Electric, a subsidiary of Legrand France SA for Rs 837.08 crore.

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Numeric Power Systems said on Friday its board has approved sale of its UPS (uninterruptible power supply systems) business in India to Indo Asian Electric, a subsidiary of Legrand France SA for Rs 837.08 crore. The news sent shares of the Chennai-based maker of inverters, LED lighting, solar energy solutions and power conditioning products up 20% in morning trade.

The UPS business was so far accounting for most of the company's revenues. For the fiscal year ended March 2011, Numeric Power had reported consolidated income from operations of Rs 535 crore, of which UPS business revenue was Rs 533 crore.

The company said that post the sale of UPS business it will continue to carry on its other activities such as solar and wind power, iron and alloy foundry production and LED lighting.

"The deal is subject to the consent of members of the company, applicable statutory and other regulatory approvals. To give effect to this transaction, the parties concerned have this day entered into a business transfer agreement," Numeric Power said in a filing on the Bombay Stock Exchange.

In the third quarter, Numeric Power had reported a net profit of Rs 7.21 crore, down near 34% year-on-year as a sharp depreciation in the rupee over October-December increased cost of imported components.

The company's net sales in the three-month period rose about 3% from a year ago to Rs 130.2 crore.

At 10:00 hrs, Numeric Power Systems shares were locked in the 20% upper circuit at Rs 281.50.