Indo Asian Fusegear demerge its metering, power business

Moneycontrol Bureau

Indo Asian Fusegear, an electrical appliance maker, Friday demerger its metering, institutional business and proposed power business from the company for unlocking shareholder value and tapping further growth opportunities with effect from April 1.

The demerged unit known as Advanced Metering Technology would be automatically listed on both the Bombay Stock Exchange and National Stock Exchange on completion of the demerger, the company said in a press release Friday.

Post demerger, shares of Indo Asian Fusegear having face value of Rs 10 would be split into half to become face value of Rs 5 each of both the companies. This means, a shareholder of Indo Asian Fusegear holding one share of face value Rs 10 will post-demerger get one share each of face value Rs 5 of Indo Asian Fusegear and Advance Metering Technology.

"The company sees good potential of growth in renewable energy power generation viz wind and solar power and is already in talks with various companies for acquisition or joint venture etc," said chairman and managing director, VP Mahendru of Indo Asian Fusegear, in the press release.

The company also plans to venture into the production of new innovative LEDs and energy conservation lighting controls and products for improving cost efficiencies, services and performance for its customers, he added.

Simultaneously, the company also plans to merge its electrical product distribution arm, Indo Asian Marketing, with Indo Asian Fusegear by offering 7 equity shares of Indo Asian Fusegear against 10 shares of Indo Asian Marketing, the company said.