A broker laughs while speaking to a colleague, as they trade on their computer terminals at a stock brokerage firm in Mumbai
Suprajit Engineering has rallied 18% to Rs 234, extending its 5% gain in past three trading sessions, after the auto parts maker announced the acquisition of Wescon Controls, a US-based control cables maker, an enterprise value of $ 44.4 million (about Rs 295 crore).
“The company made the acquisition through its wholly owned subsidiary Suprajit USA Inc, by purchasing 100% outstanding equity share capital from Shell Topco LP managed by a Private Equity Fund - Nova Capital, UK,” Suprajit Engineering said in a statement.
Wescon Controls is a market leading manufacturer of control cables in the non-automotive Outdoor Power Equipment (OPE) space. It has marquee customers like MTD, Husqvarna, John Deere, TORO, Honda, etc., and is the largest manufacturer of OPE cables in North America.
Commenting on the acquisition Mr.K. Ajith Kumar Rai, Chairman and Managing Director of Suprajit Engineering said, “With the added strength of Wescon, new plants in India and judicious augmentation of capacities across its plants, Suprajit will emerge as the second largest cable maker in the world in the near term. We will continue our endeavour of efficient capital allocation and profitable growth”.
The stock hit a record high in intra-day trade and rallied 23% in past one-week from Rs 190 on September 9, as compared to 0.21% decline in the S&P BSE Sensex.
At 01:02 pm, the stock was up 11% at Rs 221 on the BSE. The trading volumes on the counter jumped multiple-fold with a combined 745,776 shares changed hands so far, against an average sub 100,000 shares that were traded daily in past two weeks on the BSE and NSE.