Suprajit Engineering surges on amalgamation of its subsidiary

Suprajit Engineering (SEL) board members approved amalgamation of its subsidiary, Phoenix Lamps on April 18. The company will include new business relating to lamps after acquisition of Phoenix Lamps.

The amalgamation will increase the borrowing powers of SEL. The company’s board also recommended  increasing the limits of the loans and investments. It also fixed share exchange ratio as: 4 equity shares of face value of Rs 1 each in SEL for every 5 equity shares of face value of Rs 10 each held in Phoenix Lamps.

The share price of SEL increased by 14.62 per cent on bourses in early trades; and is trading at Rs 150.6 on an intraday basis. Meanwhile, Phoenix Lamps share price too rose by 6.51 per cent on bourses; and is trading at Rs 112.8 on an intraday basis.

Phoenix Lamps is engaged in the manufacturing and trading of automotive halogen lamps. The company offers over 500 types of products. It has approximately five manufacturing units. It exports its products to more than 75 countries across Europe, the United States, Australia, Asia Pacific, Middle East and Latin America, among others.

SEL is engaged in the business of manufacturing of auto components, including control cables, speedo cables and other components for automobiles. The company offers its products to a spectrum of automotive and non-automotive cable requirements. It produces a range of mechanical control cables for motorcycles, cars, commercial vehicles and various non-automotive cables. SEL also engages in the production of instruments, speedometers and various other parts.