ALSTOM India rose 0.98% to Rs 395 at 11:56 IST on BSE after the company said it has received a letter from from Alstom Finance B.V to consider the proposal for disposal of the company's auxiliary components business.
The announcement was made on Tuesday, 8 April 2014. The stock market was closed on that day, on account of Ram Navami.
Meanwhile, the S&P BSE Sensex was up 53.32 points or 0.24% at 22,396.77.
On BSE, so far 3,314 shares were traded in the counter as against average daily volume of 9,023 shares in the past one quarter.
The stock hit a high of Rs 400.25 and a low of Rs 394.55 so far during the day. The stock had hit a 52-week high of Rs 440 on 2 April 2014. The stock had hit a 52-week low of Rs 285 on 6 August 2013.
The stock had outperformed the market over the past one month till 7 April 2014, advancing 11.49% compared with the Sensex's 1.93% rise. The scrip had also outperformed the market in past one quarter, surging 9.32% as against Sensex's 7.97% rise.
The small-cap company has equity capital of Rs 67.23 crore. Face value per share is Rs 10.
ALSTOM India (AIL) said it has received a letter from Alstom Finance B.V. dated 4 April 2014 requesting the board of directors to consider the proposal for disposal by the company of its auxiliary components business to an Indian legal entity to be specified by Triton, as a going concern on a slump-sale basis, subject to receipt of all relevant corporate consents and in accordance with applicable laws.
This activity is part of the non-core asset disposal programme, announced by Alstom, France in November 2013. The auxiliary components business proposed to be sold is part of the steam segment within thermal power and is active both in the new equipment market and aftermarket services across three product lines: air preheaters and gas-gas heaters for thermal power plants, heat transfer solutions for a variety of petrochemical and industrial processes, and grinding mills for diversified industrial applications, AIL said.
Alstom Finance B.V. has requested the company to consider the proposal favourably and commence the requisite process under Indian law including determination of the fair valuation of the auxiliary components business/undertaking and obtaining relevant consents to implement the aforesaid proposal, AIL said.
ALSTOM India reported net loss of Rs 7.58 crore in Q3 December 2013, lower than net loss of Rs 14.59 crore in Q3 December 2012. Net sales rose 9.1% to Rs 531.49 crore in Q3 December 2013 over Q3 December 2012.
ALSTOM India provides engineering, manufacturing, project management and supply of products and solutions for infrastructure sector.
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