Motilal Oswal invests Rs 190 mn in IMP Powers
Motilal Oswal invests Rs 190 mn in IMP Powers Motilal Oswal Venture Capital Advisors (MOVCAPL), a wholly owned subsidiary of Motilal Oswal (Q, N,C,F)* Financial Services (MOFSL), invested Rs 190 million in, IMP Powers. > IMP Powers (IMP) offers an opportunity to invest in the high growth transformer sector. IMP is one of the oldest player in the power equipment segment with product portfolio of various types of transformers, industrial meters and testing equipments. Transformers constitute about 95% of its FY2007 sales. The company successfully turned around after a bad phase in 2000-2005. Subsequent to the turnaround, it achieved CAGR of about 55% in sales over the last 2 years. The EBIDTA margins improved to current level of 16.6% for FY07, against low of 4.2% in FY05, due of growth in sales and operational efficiency. The company is undertaking expansion project with capital outlay of Rs 280 mn including working capital. The project includes expansion of its manufacturing facilities situated at Silvassa (UT) from existing 3,600 MVA to 6,000 MVA. The funds managed and advised by MOVCAPL, invested Rs 190 mn to part finan ce the expansion project. Brescon Corporate Advisors were the financial advisors to the company on this deal. Further, promoters of the company & Brescon Corporate Advisors, subscribed to warrants to finance the balance of the capex program. Raamdeo Agrawal, chairman of MOVCAPL,declares : “Companies like IMP which have established a strong brand and goodwill over the last 4 decades, will hugely benefit from this growth in the power sector. The company had been through a difficult phase in the past and it is this experience that will put the company in good stead to capitalize on the current growth momentum.“ Shares of the company were last trading up Rs 3.40, or 0.35%, at Rs 973. The total volume of shares traded at the BSE were 122,979. (12.54 pm, Monday)
