According to reports, Numeric Power Systems Ltd has decided to sell its UPS business with its brand, trademark and entire IP rights to an Indian subsidiary of Legrand of France, whose electrical products are already available in the country, for about Rs 837 crore.
However, NPSL, a dominant player in the Indian UPS market, will retain the other activities like green energy – solar and wind power, iron and alloy foundry production, LED lighting, etc., in India. The company will also sell its Singapore subsidiary to a Legrand affiliate.
For Numeric Power, UPS has been the core business, contributing over 90 per cent of the company’s Rs 450-crore turnover.
At a press conference held in Chennai, the Managing Director, Mr R. Chellappan, said the company will extend a ‘special’ dividend to its shareholders and would focus more on its solar business.
On both the stock exchanges, the scrip hit the upper circuit after news about the sale of UPS business was announced, on expectation that an open offer may be made by the new owners.
In a communication to the stock exchanges, NPSL said its board of directors approved on February 9 sale of the UPS business of the company to Indo Asian Electric Pvt Ltd, a wholly owned subsidiary of Legrand France SA, for Rs 837.08 crore.
Th sale consideration is for the Indian UPS business (including non-compete) and excludes the sale of 100 per cent subsidiary Numeric Lanka Technologies Private Ltd, the company said.
The board also approved the sale of the UPS business undertaking of Numeric Power System Pte. Ltd (100 per cent subsidiary), to an affiliate in Singapore of Legrand France S.A., for an aggregate $4,500,000.
To give effect to this transaction, the parties concerned have entered into a Business Transfer Agreement. The company will continue to carry on the other activities like green energy – solar and wind power, iron and alloy foundry production, LED lighting, etc.
The company has eight manufacturing facilities located at Chennai, Puducherry, Parwanoo and Colombo.