Suprajit Engineering shares surged over 10 per cent intraday on Monday after the board approved the merger of Phoenix Lamps with the company in the ratio of 4:5.
At 11.11 am, shares of Suprajit Engineering were trading 10.23 per cent up at Rs 150.80. The scrip opened at Rs 138 and has touched a high and low of Rs 156.60 and Rs 138, respectively, in trade.
Later, the scrip closed 7.31 per cent up at Rs 146.80.
Phoenix Lamps is the subsidiary of Suprajit Engineering wherein Suprajit currently owns 61.93 per cent of Phoenix equity shareholding. The merger ratio has been set at 4 shares of (Re 1 each) Suprajit for every 5 shares of (Rs 10 each) Phoenix in line with SEBI regulations.
Post merger, Phoenix Lamps will operate as a separate division of Suprajit Engineering and will continue to market itself under the brand of ‘Phoenix’.
Suprajit Engineering is India’s largest automotive cable maker with a planned annual cable capacity of 225 million cables. The company’s customer list includes most Indian automotive majors. It also exports to many marquee global customers.