Shares of HBL Power Systems traded 3 percent lower on June 23 in a knee-jerk reaction to the company's announcement to that its board of directors would consider a slump sale proposal at its June 28 meeting.
The proposal of slump sale is for two product lines - Power Electronics and Integrated Power Supplies for the railways - to Moebius Power Electronics, Hyderabad, in which HBL Power System will remain as a shareholder, the company said in an exchange filing.
At 9:34am, the stock was trading 2.7 percent down at Rs 145.65 on the BSE.
The stock has gained over 40 percent in a month, while it was up 75 percent in the year. In the past three years, the stock has spiralled close to 800 percent. From Rs 7 in 2013, it has climbed to Rs 150 as of today.
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The company clarified early on June 23 morning that the products being considered for slump sale have nothing to do with the 'Kavach' Train Collision Avoidance System, or any other signalling product of HBL Power Systems.
“There will be no impact of the proposed slump sale on HBL's 'Kavach' business; on the other hand, it will allow the HBL management to allocate more time to businesses like Kavach,” the company said in an exchange filing.
The company was in headlines after the Odisha train accident as HBL Power Systems along with Medha Servo Drives and Kernex Microsystems have developed the Kavach system jointly with Research Design and Standards Organization of the Indian Railways.
HBL Power Systems Ltd is one of the leading manufacturers of batteries, electronics and engineering products based on in-house developed technologies.
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