New Delhi, Oct 27: Havell's India plans to get its shares listed on theNational Stock Exhange. The shares are currently listed on the Mumbai andDelhi stock exchanges. The lisitng on NSE will help improve liquidity andenable investors to trade in the shares in other areas as well. At present,the company has a market cap of Rs 42.5 crore. Meanwhile, Havell's promotershave also decided to raise their stake in the company from 47 per cent to 52per cent through creeping acquisition. ``We have decided to increase ourholding by about five per cent through the creeping acquisition route andhave already informed the Delhi and Bombay stock exchanges about the same,''said chairman and managing director Rai Gupta.The company has an equity base of Rs 4.89 crore, of which 47 per cent isheld by the Indian promoters, 17 per cent by Gyer of Germany and theremaining 36 by the public. ``We have already started purchasing shares fromthe market and in the past ten days have raised our shareholding by about1.5 per cent to 48.5 per cent. The shares have been acquired for a priceranging between Rs 80 to 90,'' he said. The process is expected to becompleted by the end of this year and is being funded by the promoters'personal funds,'' said Anil Gupta, a director on the company's board.
On the bourses, the stock has been on an uptrend since August this year. Inthe past one month, the stock has inched up further to scale a new high ofRs 94. On Tuesday, the stock closed at Rs 87. Marketmen expect the stock tocontinue its northward trend in the short-term.
In the second-quarter of 1999-2000, Havell's India posted net sales of Rs21.84 crore and a net profit of Rs 82.04 lakh, an increase of 24 per centand 56 per cent, respectively, over the figures in the first quarter thisyear.
The company manufactures electrical products like cables, switchgears,meters, motors and distribution boards. The total sales of the company inthe first six months of the current fiscal have risen to Rs 45.58 crore (21per cent rise) from Rs 37.71 crore in the corresponding period last year.Net profit has risen to Rs 1.49 crore from Rs 1.06crore in the first half ofthe previous fiscal, showing a rise of 40 per cent.
``The improvement in the sales and profit margins has been mainly because ofbetter capacity utilisation and efficient usage of our countrywide marketingnetwork,'' Gupta said, adding that the performance is expected to be betterin the remaining two quarters mainly on account of an increase in capacityutilisation of switchgears. ``Havell's India has also made a small beginningin tapping international markets and has despatched the first consignment ofswitchgears worth Rs 50 lakh to the UK through its marketing tieup withdorman smith,'' Gupta said. The company also has marketing tieup withCrabtree of the UK.
Havell's plans to export switchgears worth Rs 3-4 crore in the second-halfof the current fiscal, Gupta said. The company has a technical tie-up withGyer of Germany and Schiele of Germany for its earth leakage circuitbreakers (elcbs) and control gears. While the former holds a stake in thecompany, the arrangement with the latter is purely royalty based.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.