Suprajit Engineering surges as board approves merger of Phoenix Lamps

Suprajit Engineering has surged 17% to Rs 157, also its 52-week high on the BSE, after the company announced that its board approved the merger of Phoenix Lamps with the company in the ratio of 4:5.

Phoenix Lamps is the subsidiary of Suprajit Engineering wherein Suprajit currently owns 61.93% 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, Suprajit said in a press release.

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 said the consolidated sales of combined entity for the current year is expected to be in excess of Rs 1,100 crore with good financial ratios.

Ajith Kumar Rai, Chairman of both the companies said “This merger will bring significant synergies together. The combined entity will have a strong balance sheet, along with an excellent OEM customer base and in-depth aftermarket reach. This will also enhance cost efficiencies at various levels, better management bandwidth and reduced compliance requirements. This will be a win-win for both companies”.

At 10:07 am, shares of Suprajit Engineering was up 12% to Rs 153 on the BSE with a combined 223,583 shares changed hands on the BSE and NSE.

Phoenix Lamps was up nearly 3% at Rs 113 after hitting high of Rs 117 in intra-day trade on the BSE. A combined 95,819 shares changed hands on the counter on the BSE and NSE so far.