Surya Roshni shares rallied to all-time high of Rs 192.20, up 5.2 percent intraday Wednesday after media reports suggested that two private equity firms showed interest to buy lighting business.
"Warburg Pincus and Bain Capital have expressed interest to buy into the lighting business of Surya Roshni, as the New Delhi-headquartered company is demerging it into a standalone unit," a media report said quoting unnamed sources.
The private equity acquirers could have the country's second largest maker of lighting goods at about USD 400 million, or Rs 2,400 crore, the report added.
Promoter held 63.32 percent stake in Surya Roshni as of June 2016.
The New Delhi-based company operates in two sectors - one is lighting division and second is steel products segment.
Its total turnover during the fiscal year 2015-16 grew by 7.4 percent to Rs 3,068.9 crore and profit rose by 12.6 percent to Rs 62.05 crore over previous year. The company reduced its finance cost in FY16 to Rs 96.4 crore from Rs 109 crore in FY15.
Lighting division in FY16 (which contributed 48 percent to total turnover) registered revenue growth of 24 percent at Rs 1,472 crore, cash profit growth of 27 percent and profit growth of 28 percent over the corresponding previous year.
The country's largest galvanised pipe manufacturer reported a 3 percent decline in revenue from its steel products division at Rs 1,829.4 crore for FY16 on yearly basis. Earnings before interest & tax from the same declined 12.8 percent to Rs 44.34 crore.
The New Delhi-based electric equipment maker's 43rd annual general meeting will be held on September 23.
At 11:24 hours IST, Surya Roshni was quoting at Rs 188.00, up Rs 5.30, or 2.90 percent on the BSE.
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