Shilpi Cable Technologies rose 1.87% to Rs 201.60 at 9:30 Ist on BSE after the company's board of directors approved acquisition of 100% shareholding of Gulf Aglow LED Lighting FZCO, a UAE based company
The announcement was made after market hours on Friday, 30 December 2016.Meanwhile, the BSE Sensex was down 55.61 points, or 0.21%, to 26,570.85.
On the BSE, 851 shares were traded in the counter so far, compared with an average volume of 70,908 shares in the past one quarter. The stock had hit a high of Rs 201.65 and a low of Rs 199.90 in intraday trade.
Shilpi Cable Technologies announced that its board of directors at a meeting held on Friday, 30 December 2016, approved acquisition of 100% shareholding of Gulf Aglow LED Lighting FZCO (GAL), a UAE based company incorporated within the laws of UAE. GAL is engaged in the manufacturing of lighting products. The company is selling lighting products including CFL and LED products through retails network in Middle East and African countries.
The Gulf Aglow LED Lighting FZCO had acquired lighting business from Gulf advanced lighting LLC, which was in business since last 20 years. The acquisition will be in the nature of cash consideration.
The indicative time period for the completion of the acquisition is 3 months. This acquisition is intended to expand market share of Shilpi Cable in lighting products, wires & cables in Middle East & African countries. The transaction is subject to applicable FEMA and RBI regulations.
On a consolidated basis, net profit of Shilpi Cable Technologies rose 100.7% to Rs 53.70 crore on 45.6% rise in net sales to Rs 1197.33 crore in Q2 September 2016 over Q2 September 2015.
Shilpi Cable Technologies is a specialist across the varieties of cables widely used in telecom, automotive and energy segment.
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