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Stock jumps 3% after company ventures into defence sector through acquisition 

Published 21-06-2024, 11:21 am
Stock jumps 3% after company ventures into defence sector through acquisition

The shares of one of the leading manufacturers of incandescent and automotive lamps gained 2% to ₹600 per share after the company ventured into defence business by acquiring a majority stake in SKL Private Limited.

On Friday,At 10:55 a.m.,Uravi T and Wedge Lamps Ltd shares were trading at ₹597, up 1.5 percent from the previous close on the National Stock Exchange. The company has a market capitalization of ₹660 crore.

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Uravi T & Wedge Lamps Limited has announced its decision to acquire up to 55% of the shares of SKL (India) Private Limited (“SKL India”) through a secondary acquisition, to be completed in one or more tranches. The total consideration for this acquisition is up to ₹20.1 Crores, which will be paid to the existing promoters of SKL India (“the Sellers”).

In the first tranche, the Company will acquire up to a 43.91% stake, followed by an additional 6.1% in the second tranche. The remaining stake may be acquired in subsequent tranches.Company reported in its exchange filing.

This strategic acquisition will strengthen the Company’s market position and expand its footprint in the industry.

SKL (India) Private Limited specializes in the design and manufacturing of power systems, associated equipment, and special purpose defence equipment. Through this acquisition, Uravi will be venturing into the defence sector.

Uravi T & Wedge Lamps Limited is a leading manufacturer and supplier of incandescent and wedge-based automotive lamps. The company is largest producer of automotive lamps for instrument clusters in India and the second-largest in the automotive signaling and parking lamps segment for OEMs.

The company specializes in delivering tailored solutions for both OEM and aftermarket sectors. Under the brand name “UVAL,” company offer a range of automotive lighting products, including stoplights, taillights, indicators, and wedge base lamps.

The company has formed strategic collaborations with two prominent LED filament lamp manufacturers in China and the Philippines to broaden its product portfolio.

Over the past 12 months, shares of Uravi T and Wedge Lamps Ltd have surged by 166 percent. Notably, in the last six months alone, the share value has increased by 94 percent.

The company’s revenue has grown by 51 percent, rising from ₹7.36 crore in Q4FY23 to ₹11.08 crore in Q4FY24. During the same period, the net profit improved significantly, shifting from a loss of ₹0.36 crore to a profit of ₹0.55 crore.

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Written by Omkar Chitnis


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